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Verisante Technology, Inc. Announces Non-Brokered Private Placement and Year End Operational Update


December 31, 2014 at 4:39 pm

VANCOUVER, BRITISH COLUMBIA - Verisante Technology, Inc. (TSX-V: VRS, OTCQX: VRSEF) (the “Company” or “Verisante”), a leader in cancer detection technology, today announced it has closed a non-brokered private placement of 3,888,889 common shares at a price of $0.09 per share for gross proceeds of $350,000.

The private placement comes from a Chinese Partner with whom the Company has entered into a previously announced Letter of Intent (“LOI”).  Under the terms of the LOI, the Partner has agreed to facilitate an equity investment of $2,500,000 into Verisante over the next 24 months.  Including the current $350,000, the Partner has now facilitated an investment of $1,000,000 of the $2,500,000.

The private placement is subject to all necessary regulatory and stock exchange approvals.  Securities issued pursuant to the private placement are subject to a hold period of four months plus one day from the date of distribution.  Net proceeds of the private placement will be used for working capital requirements.  A finder’s fee of 10% cash shall be paid in connection with this private placement.

Year End Operational Update

2014 began with the launch of the Verisante Research System at the SPIE conference in San Francisco in February, one of which was subsequently sold to the University of Illinois at Chicago.

Then in March a patent was issued by the Chinese Patent Office for the Company’s Core™ Series of Raman cancer detection systems for endoscopic imaging applications.  China currently has one third of all of the lung cancer cases globally and the fastest growing medical device market in the world.  Soon after the Chinese patent was granted, the Company announced the completion of a commercial prototype for the Core™.  

In May, the Company was honoured by Frost & Sullivan with the 2014 North American Technology Innovation Leadership of the Year Award for In Vivo Cancer Detection for its product, Verisante Aura™, a device for the detection of skin cancer.

Over the Summer months the Company was able to showcase its Aura™ device at the offices of the BC Cancer Foundation and sold an Aura™ to the premier executive medical clinic in Canada located in downtown Toronto.

The Summer ended with the recruitment of senior American Board Certified Dermatologists Drs. Beer and Werschler to the Company’s clinical advisory board.  Drs. Beer and Werschler are known for their expertise in clinical studies and the FDA approval process.

In the Fall months, the Company was pleased to sell an Aura™ to the Cancer Research Center in Georgia and enter into a Letter of Intent with a strategic partner to commercialize the Core™ endoscopic Raman system in China.  The highlights of the LOI are that the strategic partner will pay for the approval process in China and hold exclusive rights to the technology, subject to a royalty and an equity stake.  The strategic partner has also invested $1 million with an additional $1.5 million to be invested over the next two years. 

In December, the Company had an initial teleconference with the FDA to follow up a pre-submission application made earlier in the year.  This marks the beginning of the Aura’s™ FDA approval or clearance process for the US market.  The Company and the FDA will continue to communicate and exchange information and Verisante will issue any relevant updates as information becomes available.

In addition to the abovementioned milestones, Verisante management has streamlined its operations, and relocated all employees to its manufacturing facility in Richmond, BC.  The Company also continues to cut expenses where possible to minimize its monthly burn rate and allow it to focus on its priority of pursuing FDA approval or clearance in the United States for Aura™, and commercialization of the Core™ for China.

“I am very excited about starting the regulatory approval processes in the United States and China.  After four years of development, and approximately $20 million of investment, it is very gratifying to see Aura™ enter into the final stage of commercialization, which is to obtain regulatory approval or clearance in the US. Combined with the approval process of the Core™ in China, these are both enormous opportunities and will be major catalytic events for this Company once achieved,” said Thomas Braun, CEO.   

About Verisante Technology, Inc.

Verisante is a medical device company committed to commercializing innovative systems for the early detection of cancerVerisante Aura™ for skin cancer detection and Verisante Core™ series for lung, colon and cervical cancer detection utilize a proprietary cancer detection platform, while the operating software and probe technology are unique to each device. The cancer detection platform was developed by the BC Cancer Agency and tested and refined at the Skin Care Centre at Vancouver General Hospital. This exclusive platform technology allows Verisante to develop and offer a range of compact, non-invasive cancer detection devices that offer physicians immediate results for many of the most common cancers. Aura™ has been approved for sale in Canada, Europe and Australia. Core™ has not yet been approved for sale.

Aura™ was awarded the 2014 North American Technology Innovation of the Year Award for In Vivo Cancer Detection by Frost & Sullivan,  Popular Science Magazine’s “Best of What’s New Award” for 2011, awarded a2013 Prism Award for Innovation in Photonics and an Edison Award for Excellence in Innovation in 2013. Core™ was named one of the top 10 cancer breakthroughs of 2011 by the Canadian Cancer Society.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Company Contact:                                                                                          

Thomas Braun, President & CEO                                                                              
Verisante Technology, Inc.                                                                         
Telephone: (604) 605-0507                                                                       
Email: info@verisante.com                                                                         
Website:  www.verisante.com                                                                 
YouTube:  www.youtube.com/verisante                                                             
Twitter: www.twitter.com/verisante
Facebook: www.facebook.com/verisante 

Forward Looking Statements

This release contains forward-looking statements, including, but not limited to, statements regarding the future commercialization of medical devices, the market demand for these products and the proprietary protections the Company will obtain with regard to the technology, all of which statements are subject to market risks, and the possibility that the Company will not be able to obtain patent protection or obtain sufficient customer demand. These statements are made based upon current expectations and actual results may differ from those projected due to a number of risks and uncertainties.

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