VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 25, 2014) - Verisante Technology, Inc. (TSX VENTURE:VRS)(OTCQX:VRSEF) (the "Company" or "Verisante"), a leader in cancer detection technology, announced today it has closed a non-brokered private placement of 2,000,000 common shares at a price of $0.15 per share for gross proceeds of $300,000.
The private placement comes in conjunction with the signing of a Letter of Intent between the Company and a strategic partner (the "Partner") to grant the exclusive marketing and sales rights, in The People's Republic of China, for the Core(TM) for lung, colon, cervical and nasal cancer detection, and for the complimentary ClearVu endoscopic camera (the "Definitive Agreement").
Under the terms of the Letter of Intent, the Definitive Agreement will be contingent upon the Company receiving an additional $2.5 million investment via private placement by the end of September, 2014. The private placement shall be for common shares (with no warrants) with a discount to the market price of no greater than 15%. The Partner will separately fund the SFDA approval process for regulatory approval in The People's Republic of China, for the products starting with the Core(TM) for lung cancer, including funding clinical studies, if necessary.
"This is a major breakthrough for Verisante in the biggest market in the world for lung cancer. China has approximately one third of the lung cancer cases in the world, is currently the second largest buyer of medical devices globally, and is expected to surpass the USA in that regard sometime in the next ten years," said Thomas Braun, President & CEO of Verisante. "With so many patients and 21,000 hospitals, we are very excited to have a strategic partner who will provide capital for Verisante and separately fund the SFDA approval process for the Core(TM). This new capital will also advance Aura(TM) (for skin cancer detection) into the US FDA approval process, and we look forward to achieving these major market approvals for our game changing technology."
The private placement is subject to all necessary regulatory and stock exchange approvals. Securities issued pursuant to the private placement are subject to a hold period of four months plus one day from the date of distribution. Net proceeds of the private placement will be used for working capital requirements. No finder's fee was paid in connection with this private placement.
About Verisante Technology, Inc.
Verisante is a medical device company committed to commercializing innovative systems for the early detection of cancer. The Verisante Aura(TM) for skin cancer detection and the Verisante Core(TM) 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(TM) has been approved for sale in Canada, Europe and Australia. Core(TM) has not yet been approved for sale.
Verisante Aura(TM) 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(TM) 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Verisante Technology, Inc.Thomas Braun
President & CEO
Website: www.verisante.comYouTube: www.youtube.com/verisante
Source: Verisante Technology, Inc.