VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/29/14 --
Verisante Technology, Inc. (TSX VENTURE:VRS)(OTCQX:VRSEF) (the "Company" or "Verisante"), a leader in cancer detection technology, announced today it has signed a letter of intent, subject to a final definitive agreement, with Astoria Capital SA (WAR:ACL) to sub-license and, in turn, finance the development and commercialization of Verisante's cancer detection technology for the upper gastrointestinal system ("Upper GI Instrument").
Under the letter of intent, Astoria and Verisante plan to form a Polish joint-stock company, Verisante Technology Europe S.A. ("VTE"). ACL will receive 70% of the total equity in VTE, and Verisante will receive 25% of the total equity in VTE for assistance in management and commercialization of the technology. 5% of the shares will be reserved for Management and Supervisory Board members appointed by Verisante.
Under the terms of the letter of intent, Verisante will sublicense to VTE the worldwide exclusive technology rights for the Upper GI Instrument. VTE will pay VRS a 3% royalty on instruments sold and VRS will act as the contract developer and manufacturer of devices for VTE. VTE will also pay VRS a development fee of $1 million upon regulatory approval of a device for the Upper GI in Europe.
In addition, VTE will provide financing for up to USD $2.5 million for development and commercialization of the Upper GI Instrument, including regulatory costs. VTE will apply for EU grant funding and plans to list on the Warsaw Stock Exchange at an agreed upon time before or after completing development of the instrument. ACL will be responsible for raising any additional equity capital required to support development and commercialization of the upper GI instrument.
Thomas Braun, President and CEO of Verisante Technology, stated, "We appreciate Astoria Capital's support in forming Verisante Technology Europe with us. This joint venture is a great opportunity to accelerate the development and commercialization of our early cancer detection technology for the upper GI tract. We look forward to further expanding our reach and exposure within the European capital markets."
Mr. Adrian Dzielnicki, Vice President of Astoria Capital S.A., commented, "Gastrointestinal cancer is extremely common and nearly impossible to diagnose at an early stage. Verisante's technology was developed by the BC Cancer Agency and has been proven in the early diagnosis of skin cancer. Their platform technology has a broad reach and vast potential, and we look forward to accelerating the development of the Upper GI Instrument."
About Raman Spectroscopy in the Upper Gastrointestinal system
The Raman technology on which the Upper GI Instrument will be based was tested in preliminary clinical studies for esophageal and stomach cancer with encouraging results.
The Upper GI applications will includes everything from the esophagus to the stomach and duodenum. Using the Raman system will assist doctors in distinguishing between mild dysplasia, severe dysplasia and carcinoma in situ, which will greatly enhance patient outcomes by helping to detect lesions at the precancerous stages and could prove very useful to managing pre-malignant conditions such as Barrett's esophagus which may afflict up to 6 percent of the population in western countries.
Cambridge House Investor Conference
Verisante also announced the Company will be exhibiting at the Cambridge House Investor Conference in Vancouver, BC on June 1 and 2, 2014. Interested parties may visit the Company at our information booth (#618) where investors where Aura™ will be displayed.
Thomas Braun will also be presenting to investors at 9:50am on June 1 and 9:40am on June 2.
About Astoria Capital
Astoria Capital invests in and helps finance innovative young life sciences and technology companies with a particular focus on licensing technologies and forming joint ventures with companies from North America in order to help commercialize those technologies in Europe and around the world. Astoria Capital employs a highly disciplined due diligence process that balances risks with growth potential. It rigorously accesses management's historical track record and level of commitment. Astoria Capital carefully weighs the variables that can enhance or impede management's ability to execute. It calculates the timing and economics of scalability and the range of risk reward probabilities. Additional information is available on the company's website: www.astoriacapital.pl
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, colon 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 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.
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.
ASTORIA Capital S.A.
(+48 71) 79 11 555
Verisante Technology, Inc.
President & CEO
Source: Verisante Technology, Inc.