Positron Retains Investment Banking Firm Covington Associates To Lead Financing Of Cyclotron Project
CHICAGO, June 7, 2013 /PRNewswire/ — Positron Corporation (OTCBB:POSC), a nuclear medicine healthcare company, announces today that it has retained Covington Associates, LLC (“Covington”), as its investment banking advisor in connection with the financing of its 70 MeV cyclotron project. Covington, a specialty investment banking firm dedicated to healthcare and technology companies, will advise the Company on various financing and strategic opportunities related to the $60 million required for this 70 MeV cyclotron.
Positron intends to build, own and operate a high-energy, high-current, cyclotron facility for the production of medical diagnostic imaging and radiotherapy radioisotopes. The Company expects to finance the project through a combination of debt, equity and economic incentives.
The proposed 70 MeV cyclotron, a Cyclone 70, manufactured by IBA s.a. of Belgium, is a state of the art multi-particle, high energy, industrial cyclotron capable of producing medical and industrial radioisotopes. Positron’s cyclotron will be unique in its purpose as its focus will be to provide a consistent and reliable supply of critical radioisotopes utilized in diagnostic medical imaging, specifically cardiac PET. The Company expects that once completed, its 70 MeV cyclotron will be the largest commercially owned and operated high-energy, high-current cyclotron in the world.
“Strontium-82 will be the primary radioisotope produced at our facility, the source radioisotope used to produce rubidium-82 generators. Our approach to significantly increase the supply of strontium-82 directly addresses the industry’s most critical issue of limited availability of radiopharmaceuticals that are utilized in thousands of cardiac PET imaging procedures throughout the country each year,” stated Patrick G. Rooney, CEO of Positron. “Positron is focused on facilitating the stabilization, security and growth of the cardiac PET industry. We believe through our unique position and ability to integrate the cardiac PET supply chain, Positron will be able to increase the supply of key resources, which have limited the sector’s ability to expand; enabling Positron to meet the demands of the global cardiac PET market. We are pleased to work with Covington on the financing of our cyclotron project, as it is a true milestone and a very significant next step towards integrating the cardiac PET supply chain; enabling Positron to offer an efficient and economical end-to-end solution for nuclear cardiology’s providers and patients.”
About Positron: Positron Corporation is a nuclear medicine healthcare company vertically integrating all the segments of nuclear cardiology, providing an end-to-end solution for cardiac PET. Through proprietary PET imaging systems, radiopharmaceuticals and radioisotopes solutions, Positron enables healthcare providers to more accurately diagnose disease and improve patient outcomes, while practicing cost effective medicine. Positron’s unique products, market position and approach in securing the supply chain are substantial advantages, further accelerating the adoption of cardiac PET and growth of nuclear cardiology. Positron is redefining the industry. More information about Positron is available at www.positron.com.
About Covington Associates: Covington Associates is a specialty investment banking firm founded in 1991 serving business services, consumer & industrial, healthcare, and technology companies throughout the country. Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to close to $2 billion for both private and publicly traded companies. www.covingtonassociates.com
Forward Looking Statements: Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Positron Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Positron assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as “Risk Factors” in our filings with the Securities and Exchange Commission.
SOURCE Positron Corporation