SINGAPORE--(Marketwired - March 21, 2017) - Zecotek Photonics Inc. (TSX VENTURE: ZMS) (W1I.F) (OTC PINK: ZMSPF), a developer of leading-edge photonics technologies for industrial, healthcare and scientific markets, is pleased to provide an update to the memorandum of understanding (MOU) with the Chinese medical OEM to purchase LFS scintillation crystals for a new line of medical scanners as previously announced on March 23, 2016. The MOU called for Zecotek's wholly owned subsidiary Zecotek Imaging Systems to supply LFS crystal elements to the Chinese OEM for up to 200 positron emission tomography (PET) medical scanners over the next 5 years, for clinics and hospitals across China. Due to the changing medical scanner landscape in China, the proposed agreement now calls for the Chinese OEM to purchase LFS crystal based arrays through the Shanghai EBO Optoelectronics Company (EBO).
"With the recent announcement that the EBO Opto-electronics will now use Zecotek's patented LFS scintillation crystals exclusively for PET scanner crystal arrays, the Chinese OEM requested a change to the MOU whereby they can purchase the LFS directly from EBO, based on the Zecotek-EBO arrangement," said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. "We have agreed to work through EBO because the change does not significantly affect the returns to Zecotek for the sales of LFS crystals contemplated in the MOU. Zecotek will continue to supply LFS crystals for up to 200 PET medical scanning units to be built by the OEM over the next five years. The delay in the execution of the MOU, was due to design configuration modifications to use arrays rather than single elements as well as other adjustments necessary to meet new stringent government regulations. The Chinese OEM has resumed its purchase of LFS crystals in array forms through EBO. Zecotek is working with EBO to develop a schedule to meet the OEM's production plan. We will provide a more quantitative update related to the MOU in the near future. We will continue to work with EBO and other PET OEMs to continue the growth in the sales of our patented LFS scintillation crystals in China."
EBO Opto-electronics is the largest crystal array producer and supplier in China, and their arrays are used by many of the top OEMs in the growing domestic PET medical imaging market. Recent changes to the regulatory landscape in China has caused OEMs to invest in both management and technology necessary to manufacture medical scanning devices domestically. With the Chinese government using incentives to encourage domestic hospitals to use Chinese-made medical devices to control soaring healthcare costs, domestic OEMS are now producing and installing high quality medical devices across China and they are now competing on a global basis.
About Shanghai EBO Optoelectronics Co. Ltd.
Founded in 2007 and headquartered in Shanghai, EBO has more than 120 employees and 4,000 square meters of manufacturing space. Shanghai EBO fabricates and supplies crystal arrays to an extensive customer base which includes: Neusoft Medical Systems, Samsung Medical, Topgrade Healthcare, FMI Medical Systems, IHEP of CAS, Huazhong University of Science and Technology, and many domestic and foreign universities and research institutions. EBO has the highest standard processing production line and offers shaped crystal customization and crystal array assembly to end users.
Zecotek Photonics Inc (TSX VENTURE: ZMS) (W1I.F) is a photonics technology company developing high-performance scintillation crystals, photo detectors, positron emission tomography scanning technologies, 3D auto-stereoscopic displays, 3D metal printing, and lasers for applications in medical, high-tech and industrial sectors. Founded in 2004, Zecotek operates three divisions: Imaging Systems, Optronics Systems and 3D Display Systems with labs located in Canada, Korea, Russia, Singapore and U.S.A. The management team is focused on building shareholder value by commercializing over 50 patented and patent pending novel photonic technologies directly and through strategic alliances, the European Organization for Nuclear Research (Switzerland), Beijing Opto-Electronics Technology Co. Ltd. (China), NuCare Medical Systems (South Korea), the University of Washington (United States), and National NanoFab Center (South Korea). For more information visit www.zecotek.com and follow @zecotek on Twitter.
This press release may contain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what may have been stated.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release. If you would like to receive news from Zecotek in the future please visit the corporate website at www.zecotek.com.