Date: Aug 25, 2005 Source: Company Data (
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ROCHESTER, NY—(BUSINESS WIRE)—August 25, 2005 -- Biophan Technologies, Inc. (OTCBB: BIPH - News), a developer of next-generation medical technology, has announced the formation of the Biophan Business Development Group, a new business development group committed to capitalizing on the Company's extensive intellectual property portfolio through expansion of licensing agreements to biomedical industry customers worldwide. The Company will fund the new Group's activities through resources to be made available from a financing facility of up to $30 million, to be provided by SBI Brightline XI, LLC recently established at a weighted average fixed price of $3 per share.
The Biophan Business Development Group will lead the next generation of the Company's business and revenue growth initiatives through its central business model of licensing proprietary, needed biomedical technology solutions to major medical device manufacturers and other customers worldwide. With an intellectual property portfolio currently comprising 144 patents, licenses, or applications, Biophan is a leader in several areas of nanotechnology and other advanced biomedical solutions, including Magnetic Resonance Imaging (MRI) safety and visualization, drug-elution systems and other multi-billion-dollar market segments.
John Lanzafame, President of the Nanolution drug delivery division, will also serve as Corporate Vice President of the newly established group. Mr. Lanzafame's responsibilities include sales, marketing, and business development activities for all of Biophan. He is in the process of recruiting industry professionals to expand the Biophan sales capabilities. The group has been established to accelerate the Company's ability to carry out its primary mission to develop and commercially exploit technologies for improving the performance of biomedical devices and pharmaceutical compounds, leading to a corresponding competitive advantage by the third-party companies that license Biophan's solutions. The formation of the Group comes in the wake of Biophan's milestone licensing agreement with Boston Scientific (NYSE: BSX), one of the world’s largest manufacturers of medical devices.
"We established the Biophan Business Development Group following the Company's successful attainment of a number of critical strategic goals, and in recognition that we had achieved decisive growth steps enabling us to progress from an early-stage technology development Company toward the next phase that includes the generation of significant revenues and continued shareholder value," said Michael Weiner, CEO of Biophan.
Biophan cancelled a previous financing arrangement and entered a new agreement with SBI Brightline that provides the $30 million fixed price stock financing for up to 10,000,000 shares at an average price of $3 per share, if the Company elects to accept the full facility, with a range from $2 a share to $4 a share, which must be taken in sequential tranches of 1 million shares each. There are no warrants or fees associated with this SBI Brightline agreement. The financing requires the shares to be registered under the Securities Act of 1933 for resale by Brightline.
Biophan's recently executed equity agreement with a subsidiary of leading medical device manufacturer Boston Scientific consists of the purchase of Biophan common stock totaling $5 million, priced at a 10% premium over the average of the closing price for the 30 calendar-day period prior to the closing, which resulted in a purchase price of $3.02 per share. Its technology license agreement with Boston Scientific included an upfront payment of $750,000 and annual maintenance fees, in addition to royalties of 3-5%, and milestone payments up to several million dollars per product category readied for market.
In addition, Biophan recently secured a favorable line of credit facility of up to $2 million from Biomed Solutions, LLC, an affiliate.
"Biophan’s ability to secure and access these significant sources of financing gives us ample resources to reach the next levels of technological and business expansion," said Mr. Weiner. "These new sources of capital will help us further enhance Biophan's standing in the marketplace at a time when our unique nanotechnology and other proprietary solutions have already demonstrated their effectiveness. The need for our solutions within several multi-billion-dollar biomedical segments, has been validated repeatedly by several independent sources throughout both the scientific and medical community and, of course, the industry. Biophan's recently closed technology licensing and equity agreement with Boston Scientific was an important milestone for Biophan that demonstrated the viability of both our technology and the business strategy we established and to which we’ve successfully adhered throughout our Company's growth."
Biophan intends to use the new capital resources to fund several additional high-growth strategic initiatives, including potential valuable technology acquisitions and the expansion of business operations that has accompanied the continued execution of its business plan.
Biophan is aggressively pursuing several lines of internal research and development, and is sourcing various leading-edge providers of related technologies for license. Among Biophan's newest initiatives is the entry into the fast-growing field of medical devices to assist cardiac function. The Company is currently reviewing several cardiovascular technologies which it feels has potential for exclusive licensing in, and subsequent product development and licensing out.