Medical Intelligence Technologies Inc. - MRRS Decision

Headnote

Application made under Mutual Reliance Review System for Exemptive Relief Applications and Multilateral Instrument 11-101 - relief granted from the requirements contained in Section 2.2 (d) of NI 44-101 to have current annual financial statements and a current annual information form in order to file a short form prospectus, subject to conditions.

Applicable National Instrument

National Instrument 44-101 Short Form Prospectus Distributions, ss. 2.2, 8.1.

February 24, 2006

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

QUÉBEC AND ONTARIO

(THE JURISDICTIONS)

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

MEDICAL INTELLIGENCE TECHNOLOGIES INC.

(THE "FILER")

MRRS DECISION DOCUMENT

Background

The local securities regulatory authority or regulator (the "Decision Maker") in each of the Jurisdiction has received an application from the Filer for a decision under the securities legislation of the Jurisdictions (the "Legislation") for a decision under Part 8 - Exemption of National Instrument 44-101 Short Form Prospectus Distribution ("NI 44-101") for:

• An exemption from the requirements contained in Section 2.2 (d) of NI 44-101 to have current financial statements and a current annual information form (AIF) in order to file a short form prospectus.

Application of Principal Regulator System

Under Multilateral Instrument 11-101 Principal Regulator System (MI 11-101) and the Mutual Reliance Review System for Exemptive Relief Applications

(a) the Autorité des Marchés Financiers is the principal regulator for the Filer,

(b) the Filer is relying on the exemption in Part 4 of MI 11-101 in Québec, Alberta and British Columbia and

(c) this MRRS decision document evidences the decision of each Decision Maker.

Interpretation

Defined terms contained in National Instrument 14-101 Definitions have the same meaning in this decision otherwise defined in this decision.

Representations

This decision is based on the following facts represented by the Filer:

1. The Filer was incorporated under the Canada Business Corporations Act (CBCA) on March 11, 2004 under the name St-Moritz Capital Inc. By a certificate of amendment dated April 16, 2004, the Filer amended its articles to delete the private company restrictions.

2. The Filer completed its initial public offering on July 29, 2004.

3. The common shares of the Filer are listed on the TSX Venture Stock Exchange since July 29, 2004.

4. The Filer is a reporting issuer in the provinces of Quebec, Ontario, Alberta and British Columbia.

5. The head-office of the Filer is in Québec City, Quebec.

6. On April 27, 2005, the Filer has purchased all the issued and outstanding shares of Medical Intelligence Inc. (MIC) in exchange of 35,000,000 common shares of the capital of the Filer, which transaction is considered as its qualifying transaction under Policy 2.4 of the TSX Venture Inc. Corporate Finance Manual (the Qualifying Transaction). MIC now being a wholly owned subsidiary of the Filer.

7. In connection with the Qualifying Transaction, the Filer has filed a long form prospectus (the Prospectus) in order to qualify the 35,000,000 common shares issued in connection with the Qualifying Transaction and to distribute 7,500,000 units (each unit comprised of one common share and one half common share subscription warrant) for gross proceeds of $3,000,000 in the provinces of Quebec, Ontario, Alberta and British Columbia (the Offering).

8. The Prospectus was filed on March 31, 2005 under SEDAR project #742220, in the provinces of Quebec, Ontario, Alberta and British Columbia for which an MRRS Decision document evidencing receipt by the regulators in each such provinces was issued on April 1st, 2005. The closing of both the Qualifying Transaction and the Offering took place on April 27, 2005.

9. The Prospectus complied with applicable securities legislation and included disclosure in accordance with item 14.5 of Form 51-102 F5.

10. The Filer has changed its name from St-Moritz Capital Inc. to Medical Intelligence Technologies Inc. by a certificate of amendment dated June 28, 2005.

11. MIC was incorporated on February 16, 2001 under Part IA of the Companies Act (Quebec), as a private company.

12. After the Qualifying Transaction, the Filer changed its name to Medical Intelligence Canada Inc. by a certificate of amendment date July 6, 2005.

13. The Filer is not in default of its obligations as a reporting issuer under the legislation of any jurisdiction in which it is a reporting issuer or its equivalent.

14. The Filer financial year-end is December 31.

15. As mentioned in the Prospectus, before the Qualifying Transaction, the Filer's main business activity was to identify and assess business or assets with a view of completing a Qualify Transaction. After the Qualifying Transaction, the Filer continued to carry on the business of MIC which is the design of portable detection and locating devices for the benefit of persons suffering from cognitive disorders or cardiovascular diseases.

16. The Filer has the intention to proceed to a distribution of securities by way of a short form prospectus pursuant to NI 44-101.

17. The Filer has never filed an AIF.

18. The Filer, as a successor issuer after the Qualify Transaction, does not have current annual financial statements but has not yet been required to file such annual financial statements under the applicable continuous disclosure rule of the jurisdictions where it is a reporting issuer.

Decision

The Decision Makers being satisfied that each has jurisdiction to make this decision and that the relevant test under the Legislation has been met, the Requested Relief is provided that:

1. The Filer includes in the short form prospectus the information required by section 11.1 of Form 44-101F1 Short Form Prospectus;

2. the Relief will expire not later than April 30, 2006, being 120 days from the end of the Filer's financial year ended December 31, 2005.