Positron Corporation Accepts Economic Incentives Offer From the City of Gary, Indiana for $30 Million Towards 70 MeV Cyclotron Project
Published: Jul 23, 2012
GARY, Ind., July 20, 2012 /PRNewswire/ -- Positron Corporation (OTCBB:POSC), a leading molecular imaging healthcare company, announces approval of a Pledge Resolution for $15 Million in Tax Increment Financing (TIF) Bonds,from the Redevelopment Commission of the City of Gary, Indiana towards the development of Positron's 70 MeV cyclotron project.
In addition to the TIF incentives, the City of Gary will assist in sourcing the appropriate allocation of New Market Tax Credits (NMTC) that could cover approximately $15 Million, or 33%, of the estimated total development costs for the project. Positron seeks to raise approximately $65 million, in total, for this project through a combination of debt, equity and incentives.
Positron's development plans are expected to create more than 50 permanent jobs in Gary over the next five years. These jobs are a combination of highly skilled scientific and technical positions, as well as, production, manufacturing, maintenance, security, shipping and receiving positions. In addition, the Company estimates the development of the facility will create 100-150 construction jobs over the duration of the project.
The Company believes Gary, Indiana may realize further economic benefits through complementary businesses, such as: material manufacturers, medical and molecular imaging R&D, pharmaceutical and industrial companies and U.S. Government agencies, locating in Gary in order to be in close proximity to this unique facility. Gary is an ideal choice for expansion, based on its growing economy, geographic location, proximity to U.S. Government facilities and the City's commitment to developing a thriving healthcare and technology environment.
Patrick G. Rooney, Chief Executive Officer of Positron, states, "Securing, stabilizing and growth of the supply chain should have a considerable impact on the industry; we have built a solid foundation in our core cardiac imaging products and we continue to vertically expand into medical isotopes and radiopharmaceuticals, allowing us to offer an end-to-end solution for cardiac PET imaging. The execution of our plan, to date, is a tribute to our team's diligence and the extensive cooperation of Mayor Freeman-Wilson, the Department of Economic Development and the Redevelopment Commission of Gary, Indiana."
This cyclotron, once completed, will be the highest energy commercial cyclotron within the United States, further advancing Positron's isotope production mission; the core of Positron's business plan. This project is the most significant endeavor in the Company's history and strengthens Positron's position in the marketplace, with far-reaching implications in and beyond the nuclear cardiology industry.
Positron has entered into a real estate agreement in an economic redevelopment district of Gary with interstate frontage and easy access to all major transportation arteries. Positron and the City of Gary are working to finalize a definitive agreement regarding the proposed incentive package for this project.
About Positron: Positron Corporation is a leading molecular imaging healthcare company providing innovative nuclear medicine technologies and solutions that are reshaping the field of nuclear cardiology. Through proprietary PET imaging systems, services and radiopharmaceutical solutions, Positron enables healthcare providers to more accurately diagnose disease and improve patient outcomes while practicing cost effective medicine. Positron has gained significant traction in a diverse industry and continues their strong commitment to excellence and advancing cardiac imaging solutions. More information about Positron is available at www.positron.com.
Forward Looking Statements: Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Positron Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Positron assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as "Risk Factors" in our filings with the Securities and Exchange Commission.
SOURCE Positron Corporation