To: Sergio H who wrote (15128 ) 4/20/1999 10:37:00 AM From: JanyBlueEyes Read Replies (1) | Respond to of 29382
CCSI - Chromatics Color Sciences Int'l Thanks to Sergio for suggesting that I post about this company on this board. I have followed this company for a few years now and I believe they are just at the threshold of explosive things happening. I apologize for the length of this post, but there is so much potential it took up a couple pages: CCSI is a company that has developed and received FDA clearance on a medical device that non-invasively checks the level of bilirubin (jaundice) in a newborn's blood. The current method used to check for jaundice involves a “heelstick” procedure where a nurse actually lances an infant's heel and squeezes it and draws blood. Any parent who has had a baby knows how dreadful it is to watch blood being drawn from the baby's heel as the baby cries in pain. Often, this must be done repeatedly (especially on premature infants). This device eliminates the need for a blood test to monitor jaundice. In clinical trials it was shown to be 95% effective. It also must be used with disposable tips (recurring income) that calibrate the device before each use. List of products located here: Message 4329124 The company attended many major pediatric conventions throughout the world in 1998 and generated intense interest in the device from the medical community. While they were still in negotiations with “major companies” interested in distributing the device they set up their own distribution and marketing division and commenced shipping on February 11, 1999 (news release here: Message 7772213 ) On Friday, April 16 1999 the company released news on results of fiscal year 1998 and that they had "raised gross proceeds of $5 million from the private placement of 14% Senior Convertible Debentures due April 15, 2002, the proceeds of which the Company intends to use to support its marketing efforts and obligations under the arrangements with the marketing and distribution partner selected.” I realize that debentures generally throw up red flag but it is my understanding that they were received by one person and they are “locked in”. Of particular interest in the article was this paragraph: “The Company also announced that it had agreed on the basic deal terms with two potential marketing and distribution partners for the exclusive distribution of the Colormate(R) TLc.BiliTest(TM)System in the hospital, pediatrician and home healthcare markets. Both of these proposals include terms requiring minimum annual placements of the Colormate(R) TLc.BiliTest(TM) System and TLc.Lensette(TM) calibration standards and/or charges per use. The Company's Board of Directors is reviewing both sets of terms, as well as the recommendations of its advisors, and the Company anticipates selecting one of these distributors and entering into the definitive documentation shortly.” At last count there were over 3mm short shares in the stock. The potential for a short squeeze should not be taken lightly. --------------- There are other medical and non-medical aspects that this technology can be useful for: Clinical trials are underway for dermatological use in determining the appropriate levels of phototherapy to treat various skin diseases and patient tolerance for such. This is a another major medical aspect. The device could be used to help treat patients for a variety of diseases including psoriasis, excema, cutaneous T-cell lymphoma, vitiligo, and others. Tuberculosis and anemia are other aspects the company may explore. Consumer Applications: Nordstrom Dept. Stores signed a lease and license for use of the Company's technology and Colormate® Systems for custom blending cosmetics at 4 of its flagship stores. Under the agreement, products provided by the Company are used to formulate and recommend the ''C20 Color to Order®'' line of cosmetic products (Nordstrom's line of cosmetics). After an initial evaluation period additional Nordstrom store locations will be added. Nordstrom will use the Colormate® II units to analyze individual customers' skin color and recommend custom-blended foundation color formulations to match or enhance their natural skin color, along with appropriate customized shades of blush, lipstick, concealers, eyeshadow and powders. In addition to the cosmetics application there are also other opportunities such as tooth enamel, hair color, hosiery, fashion, textiles, etc. In the past, dentists have struggled to match the exact color of teeth for caps, bonding, dentures, etc. Chromatics' technology matches the color precisely. Upon reaching agreements with distributions partners, the Company plans to distribute the technology to dentists' offices and dental laboratories. Geologists have conducted experiments to document the degree of soil contamination in oil and gas spills by measuring the color of soil. Using a “pocket-color computer” (similar to the size of a calculator) consumers can find the exact color match for an item of clothing, towels, sheets, etc. The technology can also be used to match paints, carpets, wallpaper, etc. for interior design purposes. There is more information that I have put together here on SI on the introduction post located here:Subject 2698