SOURCE: Atossa Genetics, Inc.

Atossa Genetics, Inc.

December 17, 2015 08:30 ET

Atossa Genetics Completes Sale of Its Wholly-Owned Subsidiary The National Reference Laboratory for Breast Health, Inc.

Atossa Retains 19% Ownership Through Preferred Stock

SEATTLE, WA--(Marketwired - Dec 17, 2015) - Atossa Genetics Inc. (NASDAQ: ATOS), a healthcare company focused on developing locally-administered pharmaceuticals for the treatment of pre-cancerous conditions and early stage breast cancer, today announced that on December 16, 2015, it entered into a Stock Purchase Agreement with NRL Investment Group, LLC, an unrelated entity. Under the agreement, Atossa sold to the NRL Group 100% of its shares of Common Stock in its wholly-owned subsidiary, the National Reference Laboratory for Breast Health, Inc. (the "NRLBH"), while retaining 19% ownership through Preferred Stock. Atossa received $50,000 on December 16, 2015, for the sale of the Common Stock and the right to receive, commencing in December 2016, monthly earn-out payments equal to 6% of gross revenue of the NRLBH, up to a total of $10,000,000. Atossa also has the right in four years to sell its Preferred Stock to the NRL Group for the greater of $4,000,000 or fair market value. As a result of the transaction, the NRL Group is taking over the management, operations and related costs of the NRLBH.

Dr. Steven Quay, Chairman, CEO & President of Atossa Genetics commented, "The sale of the NRLBH represents an opportunity for Atossa to more fully focus our resources and efforts towards the development of our pharmaceuticals. The sale is structured so that we have the potential to receive significant proceeds from the sale based on potential gross revenue of the NRLBH and through our 19% stake in Preferred Stock. We are very impressed with the buyer's experience and capabilities in successfully growing businesses, including in the healthcare space, and are confident in their abilities to succeed with our laboratory business and we look forward to sharing in that success. We remain highly optimistic and fully committed to our future development of therapeutics that we believe can dramatically alter the current standard of care in pre-cancer and early stage breast cancer."

About Atossa Genetics
Atossa Genetics Inc. is focused on improving breast health by developing locally-administered pharmaceuticals for the treatment of pre-cancerous conditions and early stage breast cancer. For more information, please visit www.atossagenetics.com.

Forward-Looking Statements
Forward-looking statements in this press release are subject to risks and uncertainties that may cause actual results to differ materially from the anticipated or estimated future results, including the risks and uncertainties associated with actions and inactions by the FDA, the outcome or timing of regulatory approvals needed by Atossa to sell its products, responses to regulatory matters, Atossa's ability to achieve its objectives and continue to manufacture and sell its products, recalls of products, the safety and efficacy of Atossa's products and services, performance of distributors and investigators, whether Atossa can launch in the United States and foreign markets the additional tests, devices and therapeutics in its pipeline in a timely and cost effective manner, whether the earn-out for the sale of the NRLBH will be achieved and paid and other risks detailed from time to time in Atossa's filings with the Securities and Exchange Commission, including without limitation its periodic reports on Form 10-K and 10-Q, each as amended and supplemented from time to time.

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