PR out this morning, another step forward with the solid backing of a major player.
Read it, just another vote of confidence for investors from an investor.
Great news, I would image Battelle has some sound advice to ADMD management and how to proceed with FDA application.
They are worth there weight in gold, oh wait, there already worth $6 billion.
On May 15, 2014, Advanced Medical Isotope Corporation (the "Company") entered into an agreement with Battelle Memorial Institute, an Ohio nonprofit corporation ("Battelle"), pursuant to which the Company issued to Battelle (i) a 10% convertible debenture in the principal amount of $350,000 (the "Debenture"),
(ii) a warrant (the "Warrant") exercisable for shares of common stock of the Company (the "Common Stock"), and (iii) 532,609 shares of Common Stock in satisfaction of a promissory note issued by the Company to Battelle on May 1, 2013 in the principal amount of $349,913.41 as payment for research services performed by Battelle for the Company.
The Debenture was scheduled to mature on May 15, 2015 and on June 6, 2014, Battelle converted the Debenture into Common Stock for a total issuance of 16,530,974 shares of Common Stock.
The Warrant is exercisable for three years from issuance to purchase up to the number of shares of Common Stock equal to the quotient obtained by dividing the original principal amount of the Debenture ($350,000) by the Warrant Exercise Price (subject to adjustment to maintain the original value proposition and to support the ability of Battelle to convert the full value of the indebtedness to shares of Common Stock) at a price per share equal to the Warrant Exercise Price in cash. The "Warrant Exercise Price" is equal to the lesser of the market value (defined as the mean market closing price per share over the 10 trading days immediately prior to the notice date of exercise) and $0.046 per share.
The securities described above were offered and sold in reliance upon exemptions from registration pursuant to Section 4(a)(2) under the Securities Act of 1933, as amended.
Short of announcing FDA approval for AMIC’s brachytherapy products, I believe the attached is probably the most exciting news AMIC could reasonably expect to receive for its future prospects. Battelle Memorial Institute – the extremely highly regarded scientific and medical research institution with 22,000 employees, global operations and last year revenues exceeding $6.2 billion, has acquired about a 10% interest in AMIC.
Battelle developed the underlying patents for AMIC’s brachytherapy products and has partnered with AMIC on several research assignments.
By taking this interest in AMIC, Battelle:
1. Marries a significant equity interest to its patent license, re-emphasizing Battelle’s collaboration with AMIC to support the brachytherapy products as a break-through in treating cancer;
2. Sends an unmistakable message to the FDA, regulators worldwide and potential customers that AMIC is not alone, but, rather, has the support of what is probably the world’s leading non-profit scientific and medical research institute. I believe that is the most powerful endorsement AMIC could ever hope to obtain; and
3. Improves AMIC’s balance sheet by converting payables and costs associated with Battelle’s support to an equity position