VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 30, 2014) - Verisante Technology, Inc. (TSX VENTURE:VRS)(VRSEF) (the "Company" or "Verisante"), a leader in cancer detection technology, announced today it has renegotiated a Letter of Intent between the Company and strategic partner (the "Partner") in the People's Republic of China, which terms were previously announced on June 25, 2014.
Under the terms of the new Letter of Intent, Verisante will enter into a Definitive Agreement to sublicense the world-wide rights to develop and commercialize the Core™ Raman technology with the ClearVu™ endoscopic camera system for the detection of lung cancer, and the China marketing rights for other Core™ series products (subject to existing agreements) into an LLC Company in China (the "LLC").
Verisante will received a 30% equity stake in the LLC, and the parties agree to list the LLC onto the Chinese OTC market as soon as the LLC meets listing standards, with the longer term goal of upgrading the LLC onto the ChiNext Tire of the Shenzhen Stock Exchange.
Other material terms of the Letter of Intent include:
- The Partner agreeing to an equity investment of $2,150,000 into Verisante over the next 24 months ($300,000 of which has already been invested in a previously announced private placement);
- The LLC agreeing to fund the development and commercialization of the Core™ device for lung cancer, including all regulatory costs associated with medical device approvals in China;
- The LLC agreeing to pay Verisante a $1 million development fee upon regulatory approval and sale of the LLC's first Core™ product; and
- Verisante agreeing to oversee manufacturing and supply of the Core™ for lung cancer to the LLC.
"The amendment to our original Letter of Intent to create a newly listed Chinese Company will allow greater access to the Chinese capital markets to be able to fund the development and commercialization of our Core™ technology for lung cancer", said Thomas Braun, President & CEO of Verisante. "China has approximately one third of the lung cancer cases in the world, and is currently the second largest buyer of medical devices globally. This commitment of stable capital flow over the next 24 months will also advance Aura™ (for skin cancer detection) into the US FDA approval process, and support continued sales and marketing for Aura™ in territories where the device is already approved."
About Verisante Technology, Inc.
Verisante is a medical device company committed to commercializing innovative systems for the early detection of cancer. The Verisante Aura™ for skin cancer detection and the Verisante Core™ series for lung, GI tract and cervical cancer detection utilize a proprietary cancer detection platform, while the operating software and probe technology are unique to each device. The cancer detection platform was developed by the BC Cancer Agency and tested and refined at the Skin Care Centre at Vancouver General Hospital. This exclusive platform technology allows Verisante to develop and offer a range of compact, non-invasive cancer detection devices that offer physicians immediate results for many of the most common cancers. Aura™ has been approved for sale in Canada, Europe and Australia. Core™ has not yet been approved for sale.
Verisante Aura™ was awarded the 2014 North American Technology Innovation of the Year Award for In Vivo Cancer Detection by Frost & Sullivan, Popular Science Magazine's "Best of What's New Award" for 2011, awarded a 2013 Prism Award for Innovation in Photonics and an Edison Award for Excellence in Innovation in 2013. Verisante Core™ was named one of the top 10 cancer breakthroughs of 2011 by the Canadian Cancer Society.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward Looking Statements
This release contains forward-looking statements, including, but not limited to, statements regarding the future commercialization of medical devices, the market demand for these products and the proprietary protections the Company will obtain with regard to the technology, all of which statements are subject to market risks, and the possibility that the Company will not be able to obtain patent protection or obtain sufficient customer demand. These statements are made based upon current expectations and actual results may differ from those projected due to a number of risks and uncertainties.
Company
Thomas Braun, President & CEO
Verisante Technology, Inc.
(604) 605-0507
info@verisante.com
Website: www.verisante.com
Thomas Braun, President & CEO
Verisante Technology, Inc.
(604) 605-0507
info@verisante.com
Website: www.verisante.com
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