DELRAY BEACH, Fla., Feb. 12, 2015 (GLOBE NEWSWIRE) -- VeriTeQ Corporation (OTC Markets: VTEQD) ("VeriTeQ"), a provider of implantable medical device identification and radiation dose measurement technologies, announced today that that it has executed a term sheet with Establishment Labs, S.A., ("EL"). Under the proposed agreement, VeriTeQ would exclusively license its intellectual property, safety data test and FDA file reference, and business opportunities related to its Q Inside Safety Technology for the breast implant market to EL, and EL would pay an upfront license fee of $1.75 million. EL would also have a 24-month option to purchase VeriTeQ's Q Inside Safety Technology business for the breast implant market for $10 million, minus the license fee. VeriTeQ expects to continue to operate its business for the breast implant markets as well as other proprietary applications for its Q Inside Safety Technology.
The parties also intend to jointly develop a pressure-sensing radio frequency identification ("RFID") product to detect pressure thresholds in breast implants and other medical devices.
"Our partnership with Establishment Labs is very strong, and we see many benefits from granting this exclusive license for the breast implant market to EL," said Scott R. Silverman, Chairman and CEO of VeriTeQ. "Not only will EL deliver cash upfront to us, but also we believe this agreement will ultimately result in increased sales of our products, both to EL and other manufacturers of breast implants, which is advantageous to both companies."
The parties agreed to work towards finalizing more formal documentation/contracts within 90 days.
About VeriTeQ
VeriTeQ develops innovative, proprietary RFID technologies for implantable medical device identification, and dosimeter technologies for use in radiation therapy treatment. VeriTeQ offers the world's first FDA cleared RFID microtransponder technology, called Q Inside Safety Technology™, that can be used to identify implantable medical devices, in vivo, on demand, at the point of care. VeriTeQ's dosimeters provide patient safety mechanisms while measuring and recording the dose of radiation delivered to a patient in real time. For more information on VeriTeQ, please visit www.veriteqcorp.com.
Statements in this press release that are not purely historical facts, including statements about our beliefs, intentions or future expectations, may be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements consist of any statement other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as "may", "expect", "anticipate", "intend", "estimate" or the negative thereof or other variations thereof or comparable terminology. The reader is cautioned that all forward looking statements involve risks and uncertainties and are subject to change at any time, and that our actual results could differ materially from expected results. These risks and uncertainties include, without limitation, VeriTeQ's ability to continue to raise capital to fund its operations; VeriTeQ's ability to successfully commercialize its Q Inside Safety Technology; as well as other risks or events beyond the Company's control. Additional information about these and other factors may be described in VeriTeQ's Form 10-K, filed on April 15, 2014, as amended August 19, 2014; and Form 10-Q, filed on November 18, 2014; and future filings with the Securities and Exchange Commission. VeriTeQ undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.