Advanced Medical Isotope Corp., a company engaged in the production and distribution of medical isotopes, today announced that the company has partnered with Spivak Management Inc. (“SMI”) and Mann Healthcare Partners Inc. in a joint venture to develop and execute its business strategy.
SMI and Mann Healthcare have agreed to consult AMIC for five and three years, respectively, and assist the company with strategic advice, deal-specific advice and assistance, and board representation. In addition, Mann Healthcare will facilitate introductions to potential investors.
SMI and Mann Healthcare are also purchasing from AMIC warrants entitling them to purchase up to 20,133,333 shares of common stock at an initial price of $0.20 per share. According to today’s press release, a portion of the warrants may be cancelled if certain performance milestones for AMIC are not achieved or if certain convertible debt is repaid instead of being converted. If AMIC shares trade above $1.00, the company will have the right to require exercise of the warrants, subject to certain customary adjustments.
AMIC has also agreed to pay a consulting fee of approximately $200,000 to SMI and, if AMIC receives financing through the joint venture, AMIC will reimburse certain expenses of SMI and Mann Healthcare incurred in the joint venture and will pay annual compensation during the terms of the consulting agreements, however limited by the amount paid to AMIC’s senior executive.
AMIC CEO Jim Katzaroff stated, “We look forward to the great opportunity presented by this strategic relationship. The long-term collaboration with SMI and Mann Healthcare will allow us to enlist and leverage the M&A and management skill and industry expertise of SMI and Mann Healthcare in executing AMIC’s business strategy, including consummating targeted acquisitions and joint ventures and bringing our pipeline of innovative products through the regulatory process and to commercialization. I am particularly pleased to again work with SMI’s Kenin Spivak, with whom I have partnered in several business ventures.”
SMI CEO Kenin M. Spivak added, “I have worked with AMIC’s CEO James Katzaroff for 15 years in a range of businesses. I am pleased to continue our relationship in a business that makes a critical difference to the health of so many people. AMIC is well-positioned to make that difference and if this strategic relationship achieves its goals, it will help give AMIC the tools it needs to succeed.”
Mann Healthcare Partners’ Ted Maloney commented, “We have determined that nuclear medicine presently provides one of the greatest opportunities for significant advances and improvements in medical diagnostics and therapeutics, and we believe AMIC is well positioned to take advantage of multiple opportunities by leveraging both its broad industry relationships and existing product pipeline.”
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