Relay Medical Closes Acquisition of IoT Cybersecurity Firm, Cybeats Technologies Inc.
● Relay has completed the acquisition of Cybeats, a cybersecurity company, following the announcement of the transaction dated March 3, 2021
● Cybeats’ cybersecurity technology is now commercially available for companies looking to prevent malicious attacks on their IoT devices
● Cybeats provides unique protection for companies in industries that handle critical infrastructure like the Aerospace, Automotive, Government and Building infrastructure, and Healthcare sectors
● The Cybeats value proposition addresses the global US $73 Billion Internet of Things market
March 18, 2021 – Relay Medical Corp. (“Relay” or the “Company”) (CSE: RELA, OTC: RYMDF, Frankfurt: EIY2), is pleased to announce that it has completed the acquisition of Cybeats Technologies Inc. ("Cybeats") pursuant to the previously announced Share Exchange Agreement (“SEA”) dated March 3, 2021. As part of this transaction, Relay has acquired Cybeats’ technologies, intellectual property and trade secrets, and Cybeats has become a wholly owned subsidiary of the Company.
“The IDC report predicts there to be over 55 billion connected devices by 2025. The global IoT market is growing in an unprecedented way which has left a crucial delta in the cybersecurity of over 20 billion devices worldwide. With this acquisition I believe we are well prepared to address this opportunity, as we already have first-hand experience of applying the value proposition to our own devices” said Yoav Raiter, CEO, Relay Medical Corp.
Numerous private and public institutions have come under attack within the last few months causing governments to prioritize security standards for internet-connected devices. Most recently security cameras installed in multiple government and corporate sensitive locations were hacked allowing the attacker access to the footage to the extent of embedding malicious software to operate on the cameras which emphasizes that even advanced firms need to prioritize security. In December of last year, past President Trump signed into law a bill for cybersecurity standards which requires IoT vendors to disclose vulnerabilities. [1]
Cybeats' solution not only allows the security experts to focus on real and immediate threats, but it can also eliminate malicious code within seconds. Cybeats competitive advantage is the unique microagent protection it provides to devices without affecting their normal operation and enables the visibility from within the device. It continuously monitors for vulnerabilities and maintains the software responsible for the device communications and operations to detect and block threats. Cybeats allows manufacturers of IoT devices to integrate their equipment with high-end security in a cost-efficient manner. As part of the design and development process, Cybeats also supports the development managers with the ability to create, consume and share cybersecurity enriched data with their customers using the Software Bill of Materials (SBOM) standards and format, which is an inventory of software that the product is using, a criteria becoming more commonly required.
“Connected devices became a lucrative target for attackers. We learn on a daily basis about a new type of attack or a new vulnerability exploited in the field and affecting billions of connected things. There is an endless battle between cybersecurity defenders and attackers. The transition to working from home and the dependency on smart and remote functionality required for controlling various systems only worsens the problem. This is the main reason we started Cybeats back in 2016. While we are facing a huge opportunity in a highly expanding market, it is important to make the world safer and more secure for future generations” said Dmitry Raidman, CTO, Cybeats Technologies Inc.
Relay plans to target several connected devices OEM and ODM companies in sectors such as medical, critical infrastructure, oil & gas, aerospace and energy.
Background
Cybeats was founded in 2016 by Dmitry Raidman, Vladislav Kharbash and Peter Pinsker, is based out of the Greater Toronto Area in Ontario, Canada and has developed an integrated security platform designed to secure and protect high-value connected IoT devices. Cybeats’ unique approach eliminates device downtime from cyber-attacks and allows device manufacturers to develop and maintain secure and protected devices in a timely and cost-efficient manner.
Terms
In accordance with the terms of the SEA, Relay has acquired all of the issued and outstanding shares of Cybeats for an aggregate purchase price of $7,180,000. The Company has paid $500,000 in cash, and has issued 9,311,475 common shares of the Company at a deemed price of $0.61 per share. On the date that is 120 days after closing, Relay shall have the option to satisfy $1,000,000 of the remaining purchase price either by way of issuance of 1,639,344 common shares of the Company at a deemed price of $0.61 or by way of cash, or a combination of both.
The Company announces that it has granted an aggregate of 1,500,000 options to purchase common shares of the Company at today's closing price and expiring five (5) years from the date of grant, to certain officers, directors and consultants of the Company.
For Media Inquiries, please contact: Destine Lee media@relaymedical.com | 647-872-9982
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About Cybeats Technologies Inc.
Cybeats delivers an integrated security platform designed to secure and protect high-valued connected devices. Cybeats unique approach eliminates device downtime due to cyber-attacks and allows device manufacturers to develop and maintain secure and protected devices in a timely and cost-efficient manner. Cybeats is a wholly owned subsidiary of Relay Medical Corp.
Website: www.cybeats.com
About Relay Medical Corp.
Relay Medical is a technology innovator headquartered in Toronto, Canada focused on the development of novel technologies in the diagnostics and AI data science sectors.
Website: www.relaymedical.com
Contact:
W. Clark Kent
President
Relay Medical Corp.
Office: 647-872-9982 ext. 2
TF: 1-844-247-6633 ext. 2
Email:investor.relations@relaymedical.com
Bernhard Langer
EU Investor Relations
Relay Medical Corp.
Office: +49 (0) 177 774 2314
Email: blanger@relaymedical.com
Forward-looking Information Cautionary Statement
Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company’s control. There are no assurances that the commercialization plans for the technology described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, for which filings are available at www.sedar.com.
[1] https://www.lexology.com/library/detail.aspx?g=b7ce4b27-ba92-4d11-b276-e2e3f596dfac