we got another medical device agreement. i say misonix gets pete townsend as spokesman on this one.
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Misonix Announces Agreement in Principle for Investment in Hearing Innovations Inc. and Joint Development Agreements
FARMINGDALE, N.Y.--(BUSINESS WIRE)--May 11, 1999--Misonix, Inc. ("Misonix")(Nasdaq: MSON) and Hearing Innovations Incorporated ("Hearing Innovations'), a privately held Tucson, Arizona firm, today jointly announced an agreement in principle whereby Misonix will invest $750,000 to obtain an approximately 7% equity position in Hearing Innovations. Hearing Innovations is developing ultrasonic hearing devices for the profound deaf and for tinnitus (a ringing in the ear). Hearing Innovations is the developer of proprietary technology which allows completely deaf people to hear and relieves tinnitus. It is estimated that more than 20 million people suffer from these conditions.
The agreement further provides for the issuance of warrants that if exercised gives Misonix the right to invest in Hearing Innovations. If both warrants are exercised, it would bring Misonix's equity position to approximately 15% in Hearing Innovations.
Arthur S. Przybyl, President and CEO of Hearing Innovations, stated, "Hearing Innovations is excited about the opportunity to partner with Misonix. Misonix possesses a wealth of technical and research experience in the field of ultrasonics, which complements our platform technology, ultrasonic high frequency bone conduction. From this technology, Hearing Innovations has developed and is ready to launch the HiSonic(R), a hearing device for the profound deaf."
"Based on the results of our beta clinical at Oregon Health Sciences University Tinnitus Clinic, our two companies will also be progressing towards the joint development of a tinnitus masker product. The market opportunity for this product is huge, as represented by 12 million severe tinnitus sufferers in the United States. Combining Misonix's technical, regulatory and manufacturing expertise and Hearing Innovations' clinical tinnitus research platform will serve to accelerate the development of our tinnitus masker product. We are excited that Misonix recognized and acted upon this opportunity, and we welcome their interaction with us as our valued strategic partner."
Agreements between Misonix and Hearing Innovations state that upon exercise of the first warrant, Misonix has the right to manufacture Hearing Innovations ultrasonic products and also have the right to create a joint venture for the marketing and sale of Hearing Innovations' ultrasonic tinnitus masker device.
Michael A. McManus, Jr., President and CEO of Misonix, stated "We look forward to partnering with Hearing Innovations and assisting them in the development and sale of important products for the profoundly deaf and for tinnitus. Once again our strategy is to be not only an investor but to use our expertise in development, production and sales of ultrasound technology to add value. We believe this strategy will continue to enhance our shareholder value in a meaningful way."
The agreement in principle contemplates and is subject to the finalization and execution of formal, legally binding agreements between the two companies. Both parties have indicated that they are looking forward to completion within the next several weeks.
Hearing Innovations Incorporated develops, manufactures and/or markets medical devices for the hearing impaired, profound deaf and tinnitus markets. The company's first developed product, the HiSonic(R), is an ultrasonic high frequency bone conduction hearing device for the profound deaf. The HiSonic(R) requires no surgery and is less costly than a surgical implant. |
