SOURCE: Daxor Corp.

Daxor Corp.

November 18, 2011 08:30 ET

Daxor Corporation Announces Intention to Register as an Investment Company Under the Investment Company Act of 1940

NEW YORK, NY--(Marketwire - Nov 18, 2011) - Daxor Corporation (NYSE Amex: DXR)

In our press release of September 1, 2011, the Company disclosed that on August 31, 2011, an Administrative Law Judge of the Securities and Exchange Commission issued an Initial Decision finding that Daxor is an investment company within the meaning of the Investment Company Act of 1940.

The Company presented over 500 exhibits during the Administrative Proceeding and management feels strongly that this extensive documentation of its history of operations demonstrated that it is primarily an operating medical instrumentation and biotechnology company and not primarily an investment company.

It has always been the opinion of Company Management that Daxor is primarily an operating Medical Device and Cryobanking Company and we do not agree with this decision. The Company had the option of appealing this decision to the SEC and ultimately to a Federal Court or going private.

However, in order to maintain focus on our ongoing medical research and development activities and avoid the additional legal fees that would be incurred if this decision was appealed, Daxor Management and the Board of Directors have decided the Company will not appeal this decision and will register as an Investment Company in compliance with the Investment Company Act of 1940.

We expect registering as an Investment Company will not have an impact on our operations or ongoing research and development efforts.

The Company's President, Dr. Joseph Feldschuh, said "Our primary concern is that we are able to continue our medical research and development activities to expand the use of the BVA-100 Blood Volume Analyzer as well as utilization of long-term frozen blood and semen storage."

Published studies utilizing the blood volume analyzer have shown that there is a significant improvement in survival rates when the blood volume analyzer is used in critical care situations, as well as in treating congestive heart failure. We will continue to expend and expand our efforts in those areas and comply with any increased disclosure requirements, which we do not expect to have any material impact on our operations.

Forward-looking Information

Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements." Those forward-looking statements involve known and unknown risks and are subject to change based on various factors and uncertainties that may cause actual results to differ materially from those expressed or implied by those statements, including without limitation the effect of new subscriber additions. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to revise or update any forward-looking statements.

Contact Information

  • Contact Information:
    Daxor Corporation
    David Frankel
    (Chief Financial Officer)


    Diane Meegan
    (Investor Relations)