Advanced Medical Isotope Corporation Provides Additional Update
on Strategic Plan
KENNEWICK, WA -- April 30, 2015 – InvestorsHub NewsWire --
Advanced Medical Isotope Corporation ("AMIC") (OTCQB:
ADMD),
a late stage development company engaged in the development of
brachytherapy devices for therapeutic applications, today provided
an update on additional matters that will significantly simplify
AMIC’s capital structure and improve its balance sheet.
In November and December of 2014, in connection with the
conversion of certain convertible debt and exercise of warrants,
there was an error in the calculation of common shares that should
have properly been issued, resulting in significant excess
issuances of common stock. The miscalculations were the result of
conversions and exercises being executed below the Company’s stated
par value of $0.001. The transfer agent erroneously issued excess
freely tradable common shares based on defective legal opinions
provided by the respective note and warrant holders.
In order to remedy the situation, the Company has notified all
applicable convertible note and warrant holders of the excess
issuance and has proposed specific solutions to facilitate
compliance with the State of Delaware and federal securities laws.
Specifically, the investors may either deliver to the transfer
agent the excess shares they were issued, or they may offset any
remaining convertible debt or warrants to satisfy proper
consideration for the excess common shares issued.
AMIC believes that these actions will have a positive impact on
the Company’s balance sheet, potentially eliminating up to $800,000
of convertible debt, potentially eliminating a substantial portion
of the warrants outstanding and potentially eliminating a
substantial amount of the nearly $11 million of derivative
liabilities currently reflected on AMIC’s balance sheet. It is
anticipated that these items will be reflected in the Company's 2nd
quarter 10-Q filing.
CEO James C. Katzaroff stated, “This is another important step
in normalizing AMIC’s capital structure and significantly improving
AMIC’s balance sheet. Following AMIC’s press release last week
regarding the agreement of Cadwell and associated entities to
convert $5 million of debt into preferred convertible stock with a
fixed conversion price of $0.015 and the elimination of
approximately $500,000 of seasoned trade payables without
additional dilution, the initiatives announced today further
demonstrate AMIC’s commitment to its recapitalization plan.”
Katzaroff concluded, “As stated last week, AMIC remains focused on
the commercialization of its Y-90 brachytherapy products that have
been developed to offer new solutions for cancer treatment that
improve on the safety, cost and efficacy of existing treatments.
Today's announcement is an important additional step in executing
our strategic plan."
About Advanced Medical Isotope Corporation
Advanced Medical Isotope Corporation (OTCBB: ADMD) is a late
stage development company engaged in the development of
brachytherapy devices for therapeutic applications. AMIC’s
focus is on transitioning to full operations upon receipt of FDA
clearance for its patented brachytherapy cancer products.
Brachytherapy uses radiation to destroy cancerous tumors by placing
a radioactive isotope inside or next to the treatment area.
The Company intends to outsource material aspects of manufacturing,
distribution, sales and marketing for its products in the United
States and to enter into licensing arrangements outside of the
United States, though the Company will evaluate its alternatives
before finalizing its plans. For more information, please
visit our website, www.isotopeworld.com.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995. You can identify these statements by the use of the
words “may,” “will,” “should,” “plans,” “expects,” “anticipates,”
“continue,” “estimates,” “projects,” “intends,” and similar
expressions. Forward-looking statements involve risks and
uncertainties that could cause results to differ materially from
those projected or anticipated. These risks and uncertainties
include, but are not limited to, AMIC’s ability to successfully
execute its expanded business strategy, including by entering into
definitive agreements with suppliers, commercial partners and
customers; general economic and business conditions, effects of
continued geopolitical unrest and regional conflicts, competition,
changes in technology and methods ofmarketing, delays in completing
various engineering and manufacturing programs, changes in customer
order patterns, changes in product mix, continued success in
technical advances and delivering technological innovations,
shortages in components, production delays due to performance
quality issues with outsourced components, regulatory requirements
and the ability to meet them, government agency rules and changes,
and various other factors beyond the Company’s control.
CONTACT:Advanced Medical Isotope Corporation
James C. Katzaroff
(509) 736-4000
1021 N. Kellogg St.
Kennewick, WA 99336