Item 7.01 Regulation FD Disclosure
Based on our current assessments of market interest, we believe that our Kallo Integrated Delivery System ("KIDS") continues to receive strong interest as a "Healthcare Delivery Solution" in certain developing countries. Several of our network partners have informed us that they still believe in us and our management and the unique and innovative KIDS concept.
Based on the response and the interest that we received to date, we are continuing to work with our partners and our customers with the hope that we may be able to expand our current marketing pipeline to offer our products and services in geographic markets where we may have advantages compared to others. As a summary, we are able to report that we have made progress in our business development cycle in each of the following countries which, if current trends and discussions continue, may allow us to gain a presence in each of these countries if we are able to gain necessary authorizations and obtain the financial resources needed to undertake these efforts.
Over the last four years we have been undertaking efforts that we hope will allow us to have a strong business relationship with the Government of the Republic of Guinea. The scope of the original supply contract signed in January 2014 has been significantly expanded and we have implemented plans to obtain the necessary financing for the project with a suitable and qualified conglomerate based in the Middle East and Europe. We have also received assurances that the conglomerate is willing and able to finance, under a framework agreement between us, the Republic of Guinea and the financier, not only our healthcare project, but other planned infrastructure projects that currently look very promising. While we are optimistic that we will be successful in implementing these arrangements and executing our plans, we are aware that there are several third parties beyond our control and market conditions and circumstances may change which may adversely impact our ability to proceed with these plans.
Currently, we have entered into five 400 bed hospital Concession Agreements with the Republic of Ghana under a FBOOT arrangement (finance, build, own, operate and transfer) model. Each of the FBOOT arrangements and the related agreements provide for 15 year terms if certain conditions and other contractual requirements are satisfied.
We are also working to finalize the financing arrangements for these Public Private Partnership (PPP) projects and we remain optimistic that we may be able to successfully implement our plans and strategies if circumstances and market conditions allow.
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Other African Countries:
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We are also continuing to evaluate opportunities that we may have to work with a number of other African countries including Ivory Coast, Sierra Leone, Senegal, Niger, Gambia and Sudan to study their requirements that may allow us to offer an efficient healthcare infrastructure to manage the current and growing needs of each country. In each instance we have completed some preliminary evaluations that suggest that we may be able to offer significant health care solutions in each of these countries if circumstances and market conditions allow. At the same time we are aware of the continuing uncertainties that face any business venture in countries where there is considerable uncertainty involving the application of the rule of law and where dispute resolution and the necessary financial arrangements inherent in our business may be in doubt.
We have had discussions with representatives of the Government of the Philippines to assess their unique healthcare delivery needs given that their population is spread across several islands (7,641 islands).
Our initial assessment is that we may be able to offer innovative solutions incorporating Mobile Clinics and Floating Clinics within the KIDS platform, that could potentially address complex healthcare delivery challenges facing the country. We continue to believe that, if our solutions are properly implemented, it may allow us greater opportunity to offer healthcare solutions that will serve to address health care needs in the country.
We believe that overall our proposals have been well received by the Government and that with further efforts we may be able to offer our products and services to address the health care needs that we have identified in the Philippines.
In early January 2018 we were invited to attend the Council of the Cold Lake First Nations Group meeting in Cold Lake, Alberta to discuss our proposal for an innovative technology solution for the First Nations Community's pressing healthcare needs. While our proposal was well received and we have had follow-up meetings, we are hopeful that our efforts will be successful but we cannot assure you that we will successfully achieve our objectives.
Overall:
The diversity of our marketing efforts and the widespread interest that we have received in our unique, holistic healthcare delivering solution speaks to what we believe is the enormous need for improved healthcare services in many parts of the globe. We are optimistic that if market conditions and our circumstances allow, we may be able to implement one or more of these strategies in these countries successfully but we are aware that in each instance, we face significant and continuing political, financial, and managerial challenges and the uncertainties associated with business strategies in an ever-changing environment.
We believe that we offer innovative healthcare solutions that can be effectively structured to meet the needs of the marketplace whether in a foreign country or in Canada. We are also aware that we face continuing uncertainties in any political environment where there is uncertainty involving the application of the rule of law and where dispute resolution and the necessary financial arrangements needed to implement our business may be in doubt.