Bio-AMD, Inc.; Restructuring, MIDS Project Commences
Daresbury, England June 21, 2016; Bio-AMD, Inc. and Bio-AMD UK Holdings Ltd., our majority owned medical devices subsidiary (together “Bio-AMD”, “We” or the “Company” OTCQB: BIAD) here provides an update on our MIDS project and a restructuring of our medical device subsidiary operations.
The Company, with the agreement and support of its key scientific team (“Scientists”), has restructured its UK medical device business from its existing UK holding company into a new UK holding company (“UKH”). Key benefits to the Company’s shareholders compared to the former arrangement are;
- An increase in the Company’s majority equity in the holding company from 63% to 70%;
- The elimination of onerous PBIT based bonus schemes and notice periods contained in some subsidiary employment agreements; and
- The restoration of the Company’s full voting rights over its UK holding company.
MIDS Project to Commence
The Company is pleased to announce that it has entered into a joint venture (“JV”) with a nano-cap medical detection technology company (“Partner”) to effect the first stage of the development of The Company’s MIDS universal immunoassay device (“MIDS Project”). Under the terms of the JV, the Company is due to receive a payment of $130,000 by July 1, 2016 with four subsequent bi-monthly payments, commencing in September 2016, for a total aggregate amount of £450,500 (approximately $650,000).
The MIDS Project will be carried out by a new JV vehicle, MIDS Medical Limited (“MML”), a newly formed subsidiary of UKH. The Partner will own 40% of MML, with UKH owning the 60% remainder, subject to profit after tax adjustments in certain circumstances, dependent on Phase 1 and Phase 2 funding by the Partner. Further detail of these prospective adjustments is provided on our Form 8-K filed on June 20, 2016. The Company sees this risk equity as solid vote of confidence in the ability of MML to develop the patented MIDS technology into a commercial device.
The Company is delighted with this development which will focus on applying our patented MIDS technology into a rapid-test, cardiac event detection device. The first phase is intended to prove the MIDS technology platform as highly accurate for the detection and quantitation of magnetic nano-particles, the fundamental detection principle having been previously proved by our Scientists. We believe that, in addition to cardiac markers, the MIDS technology can be applied across a very wide spectrum of medical tests. Proof of detection is the first step in applying the MIDS technology to cardiac markers, and other immunoassay tests. The Company believes there is an enormous potential market for highly accurate cardiac marker assays conducted by a hand held device at the Point of Care (“PoC”). The Company’s target is to develop a hand-held device which can achieve Gold Standard laboratory accuracy or better, with results delivered at the Point of Care within minutes.
The JV board will be joined by the Partner’s CEO, who has a broad knowledge of and access to prospective development and distribution partners, thereby bolstering our MIDS commercial team. Further updates will be provided in due course.
About Bio-AMD, Inc.
Bio-AMD has two majority owned UK subsidiaries: Bio-AMD Limited, a technology developer for medical diagnostic devices; and WOCU Ltd, the owner of the WOCU®, a global currency data reference source for application in financial markets. (www.wocu.com).
To find out more about Bio-AMD (OTCQB: BIAD), visit our website at www.bioamd.com.
Statements in this news release that are not statements of historical fact are forward-looking statements, which are subject to certain risks and uncertainties. Forward-looking statements can often be identified by words such as "expects,” "intends,” "plans,” "may,” "could,” "should,” "anticipates,” "likely,” “believes” and words of similar import. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those expressed or implied by forward-looking statements due to a variety of factors that may or may not be foreseeable or within the reasonable control of the Company. Readers are cautioned not to place undue reliance on such forward-looking statements. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission, including without limitation the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed on March 30, 2016, and in Company reports filed subsequently thereto. Except as otherwise required by law, the Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
CONTACT: Bio-AMD, Inc.
Tom Barr, CEO
+44 (0)8445 861 910