CTI Cancels Mexico Agreements
LAYTON, Utah, Oct. 13 /PRNewswire/ -- Computerized Thermal Imaging, Inc. (OTC Bulletin Board: COII - news) announced today that the sale of 10 Breast Cancer Imaging Systems for $5 million to Computerized Thermal Imaging International (CTII) based in Mexico City has been canceled. The governing agreements executed in October 1999 (the ``Agreements'') with CTII to represent the Company in Central and South America have also been terminated by mutual consent of the two parties.
The Company released the following statement by David Packer, President and Chief Operating Officer: ``Recently, we advised CTII of our desire to renegotiate the Mexico Agreements given the substantial change in market conditions, the increased value of our common stock and unresolved issues concerning their deployment of our systems in Mexico. On October 11, 2000, following attempts to reach more favorable terms, we decided it was in the best interests of the Company and our shareholders to mutually terminate the Agreements and the sale of the 10 units. We accordingly did so and will be refunding, in due course, the $1.75 million down payment received from CTII on the initial sale of the 10 units. In connection with the termination of the Agreements, each party will bear the respective costs of any performance under the Agreements. The 10 systems, one of which is complete and two more of which will be completed by approximately October 31, will be reallocated to support upcoming trade show displays and system demonstrations, as well as preparation for introduction of the product into the US market if we receive FDA approval of our Breast Cancer Imaging System. The remaining 7 units, all for which parts are ordered, will be assembled as needed to support system testing, demonstration and our marketing efforts. Although I am disappointed that this sale could not be completed, this action eliminates a potentially onerous financial burden that was associated with the granting of common stock options under the Agreements and protects the long-term interests of our shareholders.''
Additional details concerning the termination of the Agreements are reported in the Company's Form 8-K filed with the Securities and Exchange Commission today.
CTI is seeking FDA approval for use of its Computerized Thermal Imaging System in the United States as an adjunctive diagnostic test to mammography and clinical examination for the detection of breast cancer. The test is simple, painless, and involves no radiation, breast compression, electrodes, electrical current, or skin contact. CTI also has announced evaluation of their technology for new occupational medicine applications. |
