Pyng has received the conditional acceptance of the TSX Venture Exchange of the acquisition, subject to the receipt of final documentation, and the acquisition is expected to close within the month.
In order to partially fund the acquisition, Pyng has entered into commitment letters in respect of a $1,000,000 line of credit from Vancity Savings Credit Union as well as a $1,000,000 operating loan from Vancity Capital Corporation. Pyng will grant to Vancity Capital share purchase warrants, the number and exercise price of which are to be determined at closing of the acquisition.
"These additional trauma products complement the commercialization of the Company's FAST1™ lead clinical product, providing an immediate positive benefit to the Company's earnings while also solidifying Pyng Medical's unique expertise in resuscitative care," said David Christie, President and Chief Executive Officer. "We will be selling several market leading products through an enhanced sales and distribution network to the same end-user groups in multiple large and emerging markets including hospitals, EMS and international military applications."
TPOD™ is used to stabilize patients with severe or "open-book" pelvic fractures and provides powerful, fast and safe simultaneous circumferential compression of the pelvic region. Unstable pelvic fractures are a significant source of blood loss and mortality. If untreated, the mortality rate is approximately 85%.
The MAT™ tourniquet is used to staunch bleeding for patients with severed limbs. MAT™ provides superior performance in terms of occlusion efficiency, performance speed, and ease of use. It is uniquely differentiated and easily applied by one-hand to provide life and limb-saving incremental compression in seconds.
The Complete Rapid Illuminated Cricothyrotomy Kit (CRIC™) is used to establish an airway in patients whose upper airway is blocked and obstructed. This is a standard procedure with civilian and military causalities with a facial, jaw or upper neck injury. An obstructed airway is the second leading cause of death on the battlefield, after severe blood loss which MAT™ and FAST1™ treat.
CRIC™ is currently under regulatory review by the US Food and Drug Administration, and is being developed with $750,000 of funding support and design input provided by the US Department of Defense (DOD) for the purpose of equipping US military medics. As with the MAT™ and TPOD™, the CRIC™ is expected to provide significant improvements in speed, efficacy and safety to life-saving medical procedures in hospital, EMS and military applications worldwide.
"We are particularly optimistic about the future revenue potential from the CRIC™," adds Christie. "We expect to receive US FDA market clearance of CRIC™ this summer and look forward to the commercial launch in the fall of this year."
About Bio Cybernetics International
Bio Cybernetics International (BCI) is a United States-based medical products company that focuses on products in both the orthopedic and trauma areas. BCI utilizes proprietary patented technology to provide for superior product performance, while interfacing with patients when they are at their most vulnerable medical condition. Products are sold throughout the world to medical institutions that treat patients directly, as well as governments that supply medical products to military and civilian institutions. BCI has chosen to concentrate its efforts within the orthopedics field, which is the Company's primary market interest.
About Pyng Medical Corp.
Pyng Medical Corp. is the developer and manufacturer of the proprietary, award-winning FAST1™ Intraosseous Infusion System. FAST1™ is the most rapid, reliable and safe alternative to conventional IV infusion providing lifesaving vascular access for fluid and drug resuscitation in shock and trauma victims. Pyng has received the exclusive 2008 Medical Device Company of the Year Award from LifeSciences British Columbia for its sustained achievements in commercializing the Company's proprietary FAST1™ IO System. The Company was also selected in the "2007 TSX Venture 50" Top 10 companies in Life Sciences based on solid financial metrics for the year ending December 31, 2006. With expanding markets in North America, Europe and Asia, the FAST1™ has worldwide application for use with hospitals, emergency medical services and military forces.
This news release contains certain "forward-looking statements" and "forward-looking information" which may include but is not limited to statements in respect of the proposed acquisition by Pyng. Words like "believe", "intend", "may", "expect", "anticipate", "plan", "should", "assume" and other similar expressions are forward looking statements that involve a number of risks and uncertainties. By their nature, forward looking statements involve numerous factors, assumptions and estimates. Some but not all of the factors that could cause actual results to differ materially from those projected in our forward looking statements include among others: failure to receive necessary TSX Venture Exchange approvals and/or necessary approvals of the Canadian regulatory authorities; the ability of Pyng and BCI to satisfy all of the conditions to complete the transaction.
For a further description of the principal risks affecting Pyng, see Pyng's regulatory filings at www.sedar.com. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward looking statements. Although Pyng has attempted to identify important risks, uncertainties and other factors that could cause actual results or events to differ materially from those expressed or implied in the forward looking statements, there may be other factors that cause actual results or events to differ from those expressed or implied in the forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement and Pyng undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof, unless required by law.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Pyng Medical Corp. David Christie (604) 303-7964 Website: www.pyng.com
