It appears HMSC is now paying some of its debts with equity, or with warrants. This is a sign that they are really struggling.
DENVILLE, N.J.--(BUSINESS WIRE)--May 19, 1998--Scantek Medical
Inc. (OTCBB:SKML) amended its license agreement with its exclusive
licensee, HumaScan Inc. (NASDAQ:HMSC).
Scantek Medical Inc. announced today that it had agreed with its
exclusive licensee to certain changes to the license agreement
pursuant to which HumaScan has the exclusive rights to manufacture
and distribute Scantek's adjunctive breast disease screening device
in the U.S. and Canada.
The amendments to the license agreement resolved certain matters
which were the subject of mediation between Scantek and HumaScan
Inc. and provide both Scantek and HumaScan with a package of
financial adjustments and other benefits.
Zsigmond Sagi, chief executive officer of Scantek, stated, "The
agreement with HumaScan will give it some additional time and
financing to pursue its marketing and distribution of the
BreastAlert(TM) product, while increasing Scantek's interest in that
company."
Sagi said he is confident in HumaScan's effort to implement its
business and marketing plans in the United States and Canada. "We
have shown our commitment to HumaScan by converting some of our
license fees into warrants and giving it further support for its
product roll-out."
Under the amendments announced today, during the first two years
of royalty payments, the minimum payments of $150,000 and $300,000
would not be required and, while the royalty payments to Scantek
ranging from 3% to 10% remained unchanged under the license
agreement, Scantek would credit 50% of the earned royalty payments
up to $550,000.
The parties also agreed to certain adjustments with respect to
the third year minimum royalty payment upon occurrence of certain
events.
In addition, Scantek requested certain language changes to the
license agreement and received 400,000 warrants to purchase shares
of HumaScan common stock at $4.725 per share in exchange for
reducing by $375,000 certain licensing fees due by early 1999, and
other payment adjustments. The warrants vest over a ten month
period and are exercisable for five years from vesting. |
