SALT LAKE CITY, Jan. 18, 2011 /PRNewswire/ -- TechniScan
(OTC Bulletin Board: TSNI), a medical device company engaged in the
development and commercialization of an automated 3D breast
ultrasound imaging system, announced today that it has signed a
$10 million equity purchase agreement
with Southridge Partners II, LP.
"We are pleased to have secured this equity financing facility
with Southridge, a forward thinking institutional investor, which
provides future flexibility in capital raising," said Dave Robinson, chief executive officer of
TechniScan. "We plan to use the proceeds, as needed, to support our
clinical studies of Warm Bath Ultrasound breast imaging
technology."
Pursuant to the purchase agreement, TechniScan has the right to
sell to Southridge up to $10 million
of its common stock over a twenty-four month period. TechniScan
will have the right, but is not obligated, to sell stock to
Southridge depending on certain conditions as set forth in the
purchase agreement.
"Southridge is committed to working with TechniScan in its vital
research in developing better breast cancer diagnostics and is
pleased to be the company's equity investor," said Stephen Hicks, chief executive officer of
Southridge.
A more complete and detailed description of the purchase
agreement is set forth in TechniScan's current report on Form 8-K
filed today with the Securities and Exchange Commission.
The offer and sale of the shares of TechniScan's common
stock issuable under the facility have not been registered under
the Securities Act of 1933, as amended. Accordingly, these
securities may not be offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act.
TechniScan has agreed to file within 30 days a
registration statement on Form S-1, covering the resale of the
common stock issued and issuable in accordance with the terms of
the facility.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such
jurisdiction.
About TechniScan
TechniScan, Inc. is a medical device company engaged in the
development and commercialization of a non-invasive imaging tool
designed to provide physicians with automated ultrasound images of
the human breast. TechniScan's Warm Bath Ultrasound™ (WBU™) imaging
device is limited by U.S. law to investigational use unless, and
until, cleared by the FDA. For more information, please visit
www.tsni.com.
Forward Looking Statements
Certain statements in this press release that are not
historical facts are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements may be identified by the use of words such as
"anticipate, "believe," "expect," "future," "may," "will," "would,"
"should," "plan," "projected," "potential," "intend," and similar
expressions. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of TechniScan, Inc.
(the "company") to be materially different from those expressed or
implied by such forward-looking statements. The company's future
operating results are dependent upon many factors, including risk
factors discussed in the company's periodic filings with the
Securities and Exchange Commission, which are available for review
at www.sec.gov, including the company's Annual Report on Form 10-K
filed on March 22, 2010. The company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
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For more information
contact:
Dave Robinson
TechniScan, Inc
(801) 994-2965
drobinson@tsni.com
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SOURCE TechniScan