SOURCE: Milestone Scientific, Inc.

Milestone Scientific, Inc.

April 20, 2016 10:00 ET

Milestone Scientific Increases Ownership Stake in Epidural & Intra-Articular Subsidiary to 87%

LIVINGSTON, NJ--(Marketwired - April 20, 2016) - Milestone Scientific Inc. (NYSE MKT: MLSS), a medical R&D company that designs, patents, incubates and commercializes a growing portfolio of innovative injection technologies, today announced that investors in the Company's Epidural & Intra-Articular Subsidiary, Milestone Medical Inc. ("Milestone Medical"), representing 37% of the outstanding shares of shares of Milestone Medical, have agreed to convert their ownership into shares of Milestone Scientific, Inc. As a result, Milestone Scientific issued 4,090,000 new restricted shares to Milestone Medical investors, and now owns 87% of Milestone Medical. 

Leonard Osser, Chief Executive Officer of Milestone Scientific, stated, "As a result of weakness in the Polish capital markets, combined with the significant progress we have made advancing our clinical trials, we seized the opportunity to increase Milestone Scientific's ownership stake in Milestone Medical. We believe this transaction is both timely and will benefit both Milestone Scientific and Milestone Medical shareholders as we advance towards commercialization of the epidural and intra-articular instruments. We believe the market opportunity for our epidural and intra-articular instruments is significant. In the United States alone, the epidural market is over $1 billon, with approximately 2.4 million women receiving epidurals while in labor each year and another 8.9 million epidurals are given for pain management. The intra-articular market was projected in 2015 to be $7 billion in the United States alone, with over 33 million patients suffering from osteoarthritis and 21 million people receiving intra-articular injections regularly. By making this conversion, Milestone Scientific's shareholders will now benefit to a much greater extent from the upside potential."

In March 2011, Milestone Scientific entered into a joint venture agreement with Beijing 3H (Heart-Help-Health) Scientific Technology Co., Ltd. ("Beijing 3H") for the development, commercialization, manufacture and marketing of the epidural and intra-articular injection instruments. Milestone Scientific, with the consent of the investors, organized a domestic research and development joint venture corporation, now known as Milestone Medical. Milestone Scientific held a 50% interest in Milestone Medical, and collectively, certain shareholders of Beijing 3H and a group of individual investors, including a large shareholder in Milestone Scientific, who is also a principal of a supplier to Milestone Scientific (collectively the "Co-Founders"), also held a 50% interest in Milestone Medical. In the fourth quarter of 2013, Milestone Medical sold shares of its common stock in a private placement transaction in Poland. As a result of the sale, Milestone Medical received net proceeds of $2,363,000. The effect of the sale reduced Milestone Scientific's ownership from 50% to 45.5% post transaction. In the fourth quarter of 2014, Milestone Scientific purchased an additional 995,000 shares of Milestone Medical from another shareholder for $447,750, which increased its percentage of ownership to 49.98% of Milestone Medical.

Under the current agreement, the Co-Founders, Astoria Capital and other investors in Milestone Medical are converting their Milestone Medical shares to Milestone Scientific shares at a ratio of 2 Milestone Medical shares for one Milestone Scientific share. 

About Milestone Scientific Inc.

Milestone Scientific Inc. (MLSS) is a medical R&D company that designs, patents, incubates and commercializes a growing portfolio of innovative injection technologies. Milestone's computer-controlled systems make injections precise, efficient, and virtually painless. For more information please visit our website: www.milestonescientific.com.

Safe Harbor Statement

This press release contains forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report for the year ended December 31, 2015. The forward looking statements in this press release are based upon management's reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

Contact Information

  • Contact:
    David Waldman or Natalya Rudman
    Crescendo Communications, LLC
    Email: mlss@crescendo-ir.com
    Tel: 212-671-1020