INVERNESS, Scotland, Sept. 14, 2005 (PRIMEZONE) -- In Veritas (OTCBB:IVME), a novel medical device company, today announced that it has secured a total of $10,750,000 in financing with Cornell Capital Partners LP to support the continued development and growth of the Company.
Under the agreement signed September 7th, 2005, Cornell has committed to provide up to $10 million of funding in the form of a Standby Equity Distribution Agreement or (SEDA) to be drawn down over a 24-month period at IVMD's discretion in tranches up to $500,000 each. Once a registration statement is filed by IVMD, and declared effective by the Securities and Exchange Commission (SEC), the SEDA allows IVMD to raise capital as required in amounts deemed suitable by the Company over the two-year period.
In addition, IVMD sold an aggregate of $750,000 of fixed price Secured Convertible Debentures to Montgomery Equity Partners Ltd. The structure of the convertible allows Montgomery to convert, at their option, into common shares of the Company at the fixed price of $0.153. The Company received $300,000 of the debenture at the time of signing with an additional $200,000 to be advanced on completion of audited financial statements and the final $250,000 within five days of the filing of a registration statement with the Securities and Exchange Commission (SEC) in connection with the transaction becoming effective.
John Fuller, President and CEO, said, "IVMD has had a number of breakthroughs in fundamental research into new, world beating products for medical diagnostics that can potentially improve the quality of life for millions of people. Our first product is scheduled for launch later this year. With the financing opportunity that Cornell provides, we have the potential to turn our valuable intellectual property into a pipeline of real products and confidently seek commercial partnerships for sales and distribution"
"The medical devices sector has attracted growing interest from the investment community and Cornell has been looking to make further investments into this exciting and growing sector," stated Mr. David Ratzker, V.P. Corporate Finance of Cornell Capital, LP. "Our investment in IVMD provides us entry into the diagnostics market through what we believe is an exciting new technology with many applications."
About Cornell Capital
Managed by U.S.-based Yorkville Advisers LLC, Cornell Capital Partners, LP is a key player in structuring and executing equity agreements. Facilities similar to this Standby Equity Distribution Agreement are widely utilized by companies in the USA, UK and Australia. To date, the Cornell group has made available in excess of $1 billion for over 100 publicly traded corporations. For more information please visit: www.cornellcapital.com
About IVMD, Inc.
IVMD, Inc. consists of two wholly-owned subsidiaries based in the UK: IVMD (UK) Ltd. and Jopejo Ltd. IVMD (UK) is in the final stage of its first groundbreaking medical device for the multi-billion dollar cardio-vascular market. Other medical conditions being addressed by IVMD's patented technology include the diabetes market and other areas where imaging is essential. Although the Hall Effect, the basic phenomena behind much of IVMD's technology, has been known since 1875, it is only through recent developments in semi-conductor technology and computing power that scientists have been able to apply it to the measurement of the magnetic properties of bone and tissue -- thereby enabling the Hall Effect to be considered in medical uses. The Hall Effect is a principle of physics discovered by E.H. Hall that is the measurable transverse voltage that occurs when an electric current flows through a conductor in a magnetic field. IVMD has a substantial portfolio of patents and patent applications relating to its technology. Jopejo Ltd. is also in the late stages of developing new and technically superior monitoring devices that utilize signal processing for the late-term pregnancy market.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believe," "expects," "projects," "forecasts," "intends," "will," "anticipated," "could," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the act and are subject to the safe harbor created by the act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties.