Positron Corporation and Imatron Announce Completion of
$12.7 Million Private Equity Financing for Positron
Financing to Fund Positron's Re-launch into
PET Imaging Marketplace
Houston, TX, August 18, 1999 - Positron Corporation (OTC BB: POSC) and Imatron
Inc. (Nasdaq: IMAT) of So. San Francisco announced today the completion of a
private placement of 42,166,664 shares of Positron's common stock for a total of
$12.7 million. In connection with this private placement, Positron issued
21,460,000 five-year warrants. Proceeds will be used to pay debt and for general
corporate purposes. The securities have not been registered under the Securities
Act of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
Gary Brooks, President of Positron commented, "Proceeds from this private equity
financing will provide us with sufficient working capital to re-launch Positron
and begin manufacturing and marketing of the company's Posicam(TM) positron
emission tomography (PET) scanners. The company's capital infusion comes on the
heels of recent favorable reimbursement recommendations for a broad range of PET
procedures from the U.S. Health Care Financing Administration (HCFA), the
federal agency which oversees Medicare. Currently, eight clinical applications
utilizing PET have been approved by HCFA for reimbursement: five oncology
procedures, two cardiology procedures and one neurology procedure. HCFA has
stated that, `as scientific evidence becomes available showing the effectiveness
of new technologies to diagnose and manage certain cancers, the administration
will act fast to ensure access to safe and effective technology.' Based on this
positive reimbursement trend, we are optimistic that additional PET procedures
will be approved for reimbursement by HCFA in the future."
Mr. Brooks continued, "This is an exciting and challenging turning point in
Positron's history. As we rebuild the company and move forward with the
company's sales and marketing plans, management will prudently monitor costs and
invest in Positron's growth in parallel with our continued success. We are
actively seeking qualified individuals to fill critical executive positions to
strengthen the company's management team. We look forward to keeping our
shareholders apprised of our progress as we achieve our business objectives."
S. Lewis Meyer, CEO of Imatron, stated, "As the largest shareholder of Positron,
the completion of this equity financing provides Imatron with an excellent
baseline for the valuation of our nine million share ownership position in
Positron. In addition, a portion of the proceeds from the financing will be used
to repay Imatron's $600,000 working capital loan and interest to Positron. We
are encouraged by the current reimbursement climate for PET procedures and
believe that Imatron's investment in Positron will appreciate as the company
establishes itself as a commercially viable participant in the PET imaging
marketplace delivering value to Imatron's shareholders."
Mr. Meyer continued, "One of the strategic objectives of Imatron's investment in
Positron was to secure product flow to Imatron-Japan, the exclusive distributor
of Positron's Posicam PET scanners in Japan. Given the recent approval of
Posicam systems by the Japanese Ministry of Health & Welfare (MHW), and the
proceeds from the equity financing, we believe that Positron is now in a strong
position to complete an open order from Imatron-Japan for delivery of ten
Posicam systems over the next 36 months."
Positron Corporation is primarily engaged in designing, manufacturing, marketing
and supporting advanced medical imaging devices utilizing positron emission
tomography (PET) technology under the trade name POSICAM(TM) systems.
POSICAM(TM) systems incorporate patented and proprietary technology for the
diagnosis and treatment of patients in the areas of oncology, cardiology and
neurology. POSICAM(TM) systems are in use at leading medical facilities,
including the Cleveland Clinic Foundation, Yale University/Veterans
Administration, Crawford Long Hospital, Hermann Hospital and the University of
Madrid.
Imatron, Inc. is primarily engaged in designing, manufacturing, marketing, and
supporting high performance EBT scanners based on the Company's proprietary
electron beam tomography (EBT) technology. Imatron's EBT scanner is now in use
at more than 110 major medical centers around the world, including the Mayo
Clinic, Cedars-Sinai Medical Center, Mount Sinai Medical Center, University of
Iowa, National Institutes of Health, UCLA Medical Center, Stanford University,
University of Illinois, Arizona Heart Institute, Landeskrankenhaus Graz in Graz,
Austria, Klinikum Grosshadern in Munich, Germany, Academisch Ziekenhuis
Rotterdam in Rotterdam, Netherlands, Universitaetsklinikum Mannheim in Mannheim,
Germany and Beijing Hospital in China. |
