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International Investment Firm Acquires Equity Stake In Medical Micro-Cap Company
By: AllPennyStocks.com News
March 12, 2010
Advances in medicines are occurring and astonishing us every day. Medical procedures are prolonging and enhancing lives that only a decade or so ago would otherwise have been in grave danger. The competition to find and develop new procedures and equipment to aid in the fight for life is an intense and spirited one, and companies hoping to succeed in that battle often must enlist help from outside.
So, it was significant in mid-March when Chicago-based CytoCore Inc. (OTCBB:CYOE), scored a deal with international investment firm NeoMed Management.
CytoCore develops cost-effective, highly accurate screening systems for early detection of gynecological and other cancers. The company's major product is called the CytoCore Solutions™ System and is comprised of the SoftPAP® Cervical Cell Collector, PadKit™ Cell Collector, among other revolutionary, life-saving devices.
The CytoCore Solutions™ System provides an efficient method to screen for cervical cancer in countries where the standard Pap test is not available and makes the Pap test more accurate in countries where it is currently used. Designed for easy deployment at a laboratory or at the point-of-care, the CytoCore suite of sample collection technologies assists in the detection of cervical, endometrial, and other cancers.
NeoMed, with offices in Norway, Switzerland and Boston, was founded in 1996, invests in young companies with outstanding growth prospects. Portfolio companies typically develop innovative products addressing inadequately served medical needs in the following industry sectors: pharmaceuticals, biotechnology drugs, diagnostics, medical devices and instruments. NeoMed has backed about 30 companies the world over, with total committed capital of $200 million.
NeoMed has agreed to accept 2.6 million restricted CYOE shares valued at $.50 per share along with 217,000 warrants with an exercise price of $.50 per share. The purchase amounts to a 6.3% stake in CYOE.
CYOE is acquiring not only money, but credibility in the medical community, with more of its products gaining acceptance. In February came word that its PadKit® Collection Kit -- a transport kit using an intra-labial device for the collection of gynecological samples -- had been selected by the UCLA School of Nursing as the sample collection system for a comparative cytology study of cervical cancer.
Last April, CYOE inked a deal with Pomona, California-based Amsino International, designating it as the company’s partner for worldwide sales, primarily for the SoftPAP system.
Best news of all for bargain sleuths, CYOE stock in the lower end of a 52-week range that peaked March 20 of last year at 58 cents, bottoming out in January at a nickel a share. The day after the NeoMed news, the company’s stock was trading around 18 cents a share, a price that could prove attractive to would-be investors seeking to add a life-saving, innovative company to their portfolios.
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