Starpoint breaks into medical technology field
Starpoint Goldfields Inc STS
Shares issued 14,567,578 Feb 25 close $0.47
Fri 7 Apr 2000 News Release
Mr. Rick Ilot reports
Starpoint Goldfields has launched itself into the medical technology field
by virtue of a contract signed today with Labor Control Systems Ltd. of
Israel. The contract brings to an end several weeks of due diligence
procedures and negotiation, the results of which will give Starpoint a
controlling interest in the medical development company.
Labor Control Systems Ltd. is in an advanced stage of development of labour
monitoring systems emerging from an Israeli technology incubation centre.
The systems are designed to become standard procedures in the first
instance throughout all developed countries. The labour progress monitoring
systems (LPMS) use the very latest technology linking a fibre optic probe
device with palm and console processing monitors. The systems measuring
uterine cervix dilation, effacement and consistency are designed to
considerably reduce the risk of infection during delivery due to the
reduction of vaginal examinations presently performs by attending
physicians. Apart from reducing risks of infection and reducing the
incidence of cesarean sections, the system is far more comfortable for the
patient and is expected to save between $1,200 (U.S.) to $1,500 (U.S.) in
costs of delivery. Clinical trials are presently under way with wide
approval being received from gynecologists, obstetricians and patients
alike.
In the contract signed with LCS, the company will make a series of
instalment payments totalling $3.5-million (U.S.) in exchange for shares in
Labor Control Systems Ltd. The schedule of payments is as follows:
Option to
Date (U.S. dollars) purchase
05/01/2000 $200,000 64 shares
($100,000 was paid 02/29/2000)
09/01/2000 $500,000 159 shares
11/01/2000 $700,000 225 shares
03/22/2001 $700,000 225 shares
09/22/2001 $700,000 225 shares
03/22/2002 $700,000 225 shares
The above payments will entitle the company to 1,123 shares of LCS Ltd. of
a total of 2,202 issued shares. There are options outstanding to two
members of LCS Ltd. staff each for 21 shares.
The investment proceeds will be spent on continuing development, clinical
testing, certification, manufacturing and marketing.
The company's prospective sponsor is Wolverton Securities Ltd. of Vancouver
to whom a sponsorship fee shall be paid of $30,000 plus disbursements of
related expenses. Wolverton Securities has not in any way passed upon the
merits of the transaction described herein.
At the company's annual general meeting scheduled for April 28, 2000, it is
proposed to change the name of the company to Starpoint Medi-Tech Inc. and
also the direction of business with the inclusion of this new hi-tech
medical opportunity. The above change of business to include the above
merger of interests is subject to the approval of the Canadian Venture
Exchange.
Origin and location
Labor Control Systems is a private company based in Haifa, Israel,
concerned with the scientific research and development of new medical
products. The company became operational in July, 1997, and engaged in the
development and testing of several components of a system for real-time
electronic monitoring of the progress of birth. The company operates within
a government sponsored incubation centre and benefits from subsidized
operating expenses.
Labor Control Systems consists of a team of engineers, scientists, analysts
and medical professionals with a slate of distinctive competencies. There
are four key management members operating the company under tight budgetary
restraints Including the outsourcing of some specialist work.
David Tomer is the managing director and in addition to overall direction
carries direct responsibility for research, development and marketing. Mr.
Tomer was educated at the University of California, Haifa University and
the Technion. He has held offices including that of research associate,
project manager and head of mechanical engineering.
Responsible for medical support is Professor Zion Ben Rafael. Professor Ben
Rafael is a medical doctor, obstetrician and gynecologist, and is the head
of OBGYN department at the Rabin Medical Centre in Petah Tikva, Israel.
Dr. Reuven Lewinski, obstetrician and gynecologist, is the head of the
high-risk pregnancy unit at the Bnai Zion Hospital in Haifa, Israel.
Dr. Jack Atad, obstetrician and gynecologist, was the head of the division
of gynecological oncology in the department of obstetrics and gynecology at
the Carmel Medical Center in Haifa, Israel.
There are no related parties and the transaction was negotiated on an
arm's-length basis.
Labor Control Systems Ltd. has approximately $50,000 (U.S.) in current
working capital and Starpoint has approximately $450,000 (Canadian).
Starpoint will rely on existing cash reserves and public and private
financing to complete its investment in Labor Control Systems. There is no
assurance that sufficient funds will be raised to complete its investment
and meet the objectives of both Starpoint and Labor Control Systems.
The company reliably estimates that the number of worldwide births is over
130 million per year of which some 14 million births will occur annually in
the developed countries in Europe and North America. Labor Control Systems
intends to introduce to the market a number of different configurations of
labour-control monitoring based upon sensors (probes) and palm and room
monitors for conversion and interpretation of information. The sensors are
disposable. The annual deliveries in the target market is 60 per cent of
such market or 8.2 million births a year. In the year 2003, Labor Control
Systems expects its income to be about $40-million. The market in Southeast
Asia excluded from the above figures will be managed and controlled
directly through Starpoint at its Vancouver, B.C., Canada, location.
Competition in the business of fetal monitoring is well known and
understood. With its connections and influence the company is confident
concerning its market share.
Completion of this transaction is subject to a number of conditions,
including but not limited to, Canadian Venture Exchange acceptance and
shareholder approval. Investors remain advised that there can be no
assurance that the transaction will be completed as proposed in full or in
part as proposed.
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