Vitalyze.Me Saúde e Tecnologia S.A. ('Company') (BM&FBovespa:VTLM3), in compliance with art. 157, paragraph 4 of Law 6,404/76 and in accordance with CVM Instruction 358/02, informs its shareholders and the general public that initiated the project to develop its own digital system of preventive medicine and wellness program ('Project') in partnership with renowned physicians from USA ('Partnership'). To this end, the technology licensing agreement that was signed on June 6, 2016, as disclosed in the Company's Material Fact, was terminated by the parties.

The digital preventive medicine and wellness program project continues to be the focus of the Company's operation. The advantages of this new structure are the following:

  • Vitalyze.Me will open a Medical Center of Excellence in the United States.
  • A proprietary platform will be developed in-house in partnership with international renowned physicians supported by an experienced technology team.
  • Termination of the technology license agreement signed with Vitalyze Inc. will eliminate royalty costs and will generate savings of R$15.3 million (which would be payable upon the issuance of shares) pursuant to the referred agreement.
  • Business model will be maintained, with a gain of autonomy, speed and costs.
  • In addition to Europe and South America, Vitalyze.Me also targets to explore the markets in North America and Asia.

Vitalyze.Me will become, thus, a global provider of healthcare services with the use of its proprietary technology and guarantees the speed and freedom to create and develop solutions related to preventive medicine and wellness.

The company will open an office for research and development in the United States, which will be led by Dr. Fábio César dos Santos, Vitalyze.Me Brazil Chief Medical Officer, in a partnership with renowned doctors in the field of preventive medicine and wellness in the United States, who are currently being hired.

The medical team, along with the technology specialists, will develop an in-house platform which will transform the Company into a global provider of healthcare services, as opposed to a technology licensee.

The operations will start in Brazil, which is one of the largest health and wellness markets. Brazil was chosen to start this business model, due to the profile of its people, focused on health and well-being, with an aging population pyramid looking for ways to prevent and mitigate possible diseases. The Company targets international growth, which not only covers Europe and South America, but also Asia and North America.

Management is convinced that the cost associated with the platform development will be lower than the licensing of the same technology, while it will gain speed and autonomy. The expectation is to have the new in-house technology ready in the first quarter of 2017, leveraging the same analytics and big data concept.

The Company will keep the same business model and operational project in Brazil. Funds to start this project will be provided by the controlling shareholder, Metropolis Capital Markets.

In compliance with the corporate governance practices, with CVM Instruction 358/02 and applicable corporate law, the Company will keep the market informed about relevant developments of that Partnership, as applicable.

To acecess the complete document, click here.

São Paulo, October 24, 2016

Natasha Namie Nakagawa
Investor Relations Director

Vitalyze.Me Saúde e Tecnologia SA published this content on 24 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 October 2016 10:47:02 UTC.

Original documenthttp://www.vitalyzeme.com.br/conteudo_en.asp?idioma=1&tipo=27470&conta=44&id=233734

Public permalinkhttp://www.publicnow.com/view/F3A2C7288774CA1E0C0182EBD8C75E8920743CC1