OXFORD, Miss., Dec. 4, 2006 (PRIME NEWSWIRE) -- Modern Technology Corp (PinkSheets:MODC), a diversified technology development and acquisition company, announced today its stock dividend date and details of it planned spin-off of its subsidiary, Inmarketing Group.
Stock Dividend:
On January 5th, 2007, all shareholders of record will receive shares in Inmarketing, pro rata, to their ownership in MODC. Stockholders will retain all current ownership in MODC and will receive new shares in Inmarketing in proportion to their ownership in MODC.
Spin-Off:
On Wednesday, Nov 29, 2006, Modern Technology executed an agreement whereby Modern Technology would spin-off Inmarketing in order for it to be a stand-alone public company.
The spin-off process will be completed within 6 months from the date of execution of the agreement. MODC will cause to be filed all appropriate filings with the SEC to effect the spin-off. The spin-off will eliminate over $2,000,000 in debt and contingent liabilities: $750,000 in convertible debt and $1.21 Million convertible preferred stock. Anthony Welch, Chairman, said: "As promised, we are declaring a stock dividend, creating a new public company for stockholders and further eliminating liabilities. This transaction continues our previously announced plans for profits and debt reduction. The spin-off of Inmarketing brings our reduction of debt and other liabilities to over $3,000,000 for this year alone. These efforts allow us to focus carefully on our new operational unit, Insight Medical Group and its AnuCyte cancer detection system. Shareholders should expect regular updates on our progress as we bring this incredible new technology to market."
The company will focus its initial efforts in the following major areas of cancer diagnostics:
Prostate Cancer Diagnosis
Prostate tumors with an intermediate histological grade, which represent the majority of prostate tumors, cannot be reliably determined by current clinical laboratory methods. The AnuCyte system rapidly and accurately tests for prostate cancer. The system's results provide the only clinically useful prognostic information for patients with these intermediate grade tumors.
There are approximately 2 million men living with prostate cancer in the USA, with a growth rate of about 200,000 new cases per year. Based on these figures, the company projects prostate cancer diagnostics revenues of $12 million the first year for the market and over $50 million by the end of the third year.
Cervical cancer diagnosis
Currently, cervical cancer represents a larger market than prostate cancer with 55 million Pap smears collected in the USA annually. The company's entry into this market space will be the competition free market of 2-5 million (and rising) "ASCUS" (indeterminate) Pap smears generated annually.
The AnuCyte system is the only system in the world that measures aneuploidy in cervical smears. This measurement is an independent predictor of biological outcome and will sort out the non-cancerous cells, precancerous cells, and cancerous cells in the ASCUS slide's cell population. There is no method at present in clinical laboratories for deciding the status of an ASCUS slide. The AnuCyte system can quickly deliver comprehensive and accurate results for any ASCUS slide. This puts the ASCUS market in the USA at $200-$500 million annually. The company projects cervical cancer diagnostics revenues of $16 million the first year for the market and $50 million by the end of the third year.
Overall Cancer Diagnostic Marketplace
The worldwide market potential is unquantifiable. The 'AnuCyte Cancer Detection System' is not limited to the cancers mentioned above. The system functions for any slide preparation and delivers rapid and accurate results in all suspected cancerous samples. It must be noted that our predictions only cover the USA market. The international market is much larger and will be part of the company's initial marketing efforts alongside the USA.
About the AnuCyte Cancer Detection System
AnuCyte is the only system in the world that can detect all cancers by analyzing the single trait common to all forms of cancer. This trait is not found in any healthy cell. The system rapidly and accurately identifies cancer at any stage in its development and also identifies healthy cancer-free cells in the same test. The system is unique in the world and can be applied to any form of cell sample suspected of cancer and return a reliable test result within minutes. The system completely eliminates heretofore unreliable, subjective, and error-prone pathology diagnosis of cancer and delivers an automated and completely objective measurement of the presence or absence of cancer with the highest accuracy rate of any diagnostic technology in the world. The AnuCyte system is the first and only system in the world that can accurately detect and assess the chromosomal imbalance of cancer in any tissue sample. This ability allows the system to quickly and accurately identify both cancerous and non-cancerous cells.
The inventor of the AnuCyte system, Dr. David Rasnick, Ph.D. and his scientific research collaborator, Dr. Peter Duesberg, Ph.D., have been prominent names internationally for many years for their research and publications. Investors may wish to read a recent article in Newsweek concerning the cancer research of Dr. Duesberg: http://www.msnbc.msn.com/id/14757547/site/newsweek/
About Insight Medical Group
Insight Medical Group is a specialized biosciences development company whose mission is to bring world-changing medical technology and research to market in the areas of cancer and AIDS. The AnuCyte Cancer Detection System was invented by Dr. David Rasnick, Ph.D. The technology behind AnuCyte and the chromosomal imbalance theory is the result of 45 years of combined cancer research by Dr. David Rasnick, Ph.D. and Dr. Peter Duesberg, Ph.D., who continues his studies on cancer research at the University of California, Berkeley.
About Modern Technology Corp
Modern Technology Corp, a diversified technology development and acquisition company, builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MODC improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. MODC is a fully-reporting public company with the U.S. Securities and Exchange Commission. For more information on the company's SEC filings, visit www.sec.gov. The company's web address is: http://www.moderntechnologycorp.com
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.