SOURCE: Milestone Scientific Inc.
LIVINGSTON, NJ--(Marketwired - October 30, 2013) - Milestone Scientific Inc. (OTCQB: MLSS), the recognized leader in advanced, computer-controlled injection technologies, today announced its Milestone Medical Inc. subsidiary has sold $1.5 million of its common stock in a private placement to European institutional and other investors. Closing of the transaction is subject to listing of the shares on the New Connect Market of the Warsaw Stock Exchange. WDM acted as offering agent and leading financial advisor on the transaction.
Prior to the financing, Milestone Scientific Inc. owned 50% of Milestone Medical Inc. (10 million shares out of a total 20 million shares issued and outstanding). As a result of the financing, Milestone Medical issued an additional 1 million shares to European institutional and other investors (10 entities) at $1.50 per share, representing a post-money valuation of approximately $31.5 million.
Milestone Medical Inc. was formed two years ago. Milestone Scientific Inc. formed the joint venture with Beijing 3H (Heart-Help-Health) Scientific Technology Co., Ltd. (Beijing 3H) for the development, commercialization, manufacturing and marketing of Milestone's epidural and intra-articular injection instruments. At the time, Milestone Scientific held a 50% interest in the joint venture, while a group of shareholders, including the principal shareholders of Beijing 3H and the founder of a large supplier to Milestone Scientific, held the remaining 50% interest in the joint venture.
In forming the joint venture, Milestone Scientific contributed an exclusive worldwide royalty-free license to use its patents for epidural and intra-articular applications to Milestone Medical and the other shareholders of Milestone Medical contributed $1.5 million to Milestone Medical to develop and design the prototypes using Milestone's CompuFlo® technology and disposables. Beijing 3H will handle distribution of the products in the People's Republic of China, Macao, Hong Kong and other regions of Asia. Milestone Scientific will oversee distribution in North America and Milestone Medical Inc. will handle the distribution in other international markets. Development of both the epidural and intra-articular instruments is now complete. Milestone Scientific is currently pursuing marketing approval for both instruments in the US and European Union.
Net proceeds from the financing will be used for growth capital, including hiring personnel, signing additional international distributors, and supporting the regulatory requirements of the Company.
Leonard Osser, Chief Executive Officer of Milestone Scientific, stated, "This timely financing provided by European investors will enable Milestone Medical Inc. to develop distribution channels throughout the world. Based on our proprietary platform technology, we believe these first two medical applications represent a significant market opportunity for both Milestone Medical Inc. and Milestone Scientific Inc. Our technology is based on a patented Dynamic Pressure Sensing® system (DPS®), intended to measure the density of body tissue and thus help a clinician know the location of a hypodermic needle during an injection. In applications that have already received clearance, the system utilizes computer controlled technology to provide real-time feedback to the medical practitioner, providing precision technology for administering a drug to a patient. We are pleased to have conducted this financing at the subsidiary level, which allows us to execute our strategy while minimizing dilution. This financing further validates our strategy of developing and launching new medical instruments based on Milestone Scientific's core CompuFlo ® technology."
Wojciech Gudaszewski, CEO of WDM Capital USA, LLC, commented, "We are pleased to have helped provide the capital necessary to help realize the full potential of this exciting precision drug delivery technology."
Shares of Milestone Medical, Inc. are expected to begin trading on the Warsaw Stock Exchange, the largest national stock exchange in Central and Eastern Europe and one of the fastest-growing exchanges in Europe, in late November 2013.
WDM is Central and Eastern Europe's leading small cap investment bank. It has been listed on the Warsaw Stock Exchange since 2007. Over the past 6 years, WDM has taken over 50 companies public on the Warsaw Stock Exchange. It has raised over $150,000,000 in private equity, venture capital and public financing for its clients. WDM's investment management subsidiary, WDM Capital, manages a growing portfolio of some of the region's most promising micro caps. WDM's United States subsidiary, WDM Capital USA, provides access to CEE financing and investment opportunities for North American clients and North American financing and market access for CEE clients. For more information visit: www.wdmcapital.com.
About Milestone Scientific Inc.
Milestone Scientific Inc. (MLSS) is a leading medical research and development company that designs and patents innovative injection technology. Milestone's computer-controlled systems make injections precise, efficient, and virtually painless. For more information please visit our website: www.milestonescientific.com. The epidural and intra-articular medical instruments are currently investigational in the US.