KENNEWICK, Wash., Aug. 23, 2011 (GLOBE NEWSWIRE) -- Advanced Medical Isotope Corporation ("AMIC") (OTCBB:ADMD), a company engaged in the production and distribution of medical isotopes, has entered into a strategic relationship with Spivak Management Inc. ("SMI") and Mann Healthcare Partners Inc. ("Mann Healthcare") to form a joint venture to develop and execute AMIC's business strategy.
Through a memorandum of agreement for the strategic relationship between AMIC and SMI and related agreements, SMI and Mann Healthcare will consult to AMIC for five and three years, respectively, and assist AMIC with strategic advice, deal-specific advice and assistance, and board representation. Mann Healthcare also will facilitate introductions to potential investors.
Concurrently, SMI and Mann Healthcare are purchasing from AMIC, for $.01 per warrant, warrants entitling them to purchase, in the aggregate, up to 20,133,333 shares of AMIC common stock at an initial price of $0.20 per share. A portion of the warrants may be cancelled if certain performance milestones for AMIC are not achieved or if certain convertible debt is repaid instead of being converted. AMIC will have the right to require exercise of the warrants if its common stock trades in excess of $1.00 per share, subject to certain customary adjustments.
AMIC will pay a consulting fee of approximately $200,000 to SMI and, if AMIC consummates a financing through the joint venture, AMIC will reimburse certain expenses of SMI and Mann Healthcare incurred in the joint venture and will pay annual compensation to SMI and Mann Healthcare during the terms of their respective consulting agreements that is in the aggregate below the compensation paid to AMIC's senior executive.
AMIC CEO Jim Katzaroff commented: "We look forward to the great opportunity presented by this strategic relationship. The long-term collaboration with SMI and Mann Healthcare will allow us to enlist and leverage the M&A and management skill and industry expertise of SMI and Mann Healthcare in executing AMIC's business strategy, including consummating targeted acquisitions and joint ventures and bringing our pipeline of innovative products through the regulatory process and to commercialization. I am particularly pleased to again work with SMI's Kenin Spivak, with whom I have partnered in several business ventures."
SMI CEO Kenin M. Spivak remarked: "I have worked with AMIC's CEO James Katzaroff for 15 years in a range of businesses. I am pleased to continue our relationship in a business that makes a critical difference to the health of so many people. AMIC is well-positioned to make that difference and if this strategic relationship achieves its goals, it will help give AMIC the tools it needs to succeed."
Mann Healthcare Partners' Ted Maloney added: "We have determined that nuclear medicine presently provides one of the greatest opportunities for significant advances and improvements in medical diagnostics and therapeutics, and we believe AMIC is well positioned to take advantage of multiple opportunities by leveraging both its broad industry relationships and existing product pipeline."
About Advanced Medical Isotope Corporation
Advanced Medical Isotope Corporation (OTCBB:ADMD) is a company engaged in the production and distribution of medical isotopes for advanced diagnostic and non-surgical therapeutic application. AMIC's goal is to empower physicians, medical researchers, and ultimately patients by providing them with essential medical isotopes that, until recently, have not been feasible or economical, in an effort to detect and cure human disease. For more information, please visit our website, www.isotopeworld.com
The Advanced Medical Isotope Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5139
As an advisor and a principal, Spivak Management Inc., structures and negotiates complex corporate and international transactions, directs marketing, sales and distribution of consumer products and is engaged in all facets of the entertainment industry. SMI has led multiple change-in-control, financing, licensing, production and distribution transactions, particularly in the United States and Asia. Among other transactions, SMI and its affiliates acquired control of technology pioneer Telemac Corporation, publisher Phoenix New Millennium Inc. and advertising agencies Aquarius Promotional Enterprises Inc. and Snowball Media. SMI CEO Kenin M. Spivak has served as chairman, CEO, COO and director of numerous well known public and private companies. SMI is a partner in merchant banking firm GCP LLC in Beverly Hills and Dubai and private investment firm Double M Worldwide in Bangkok.
About Mann Healthcare Partners
Mann Healthcare Partners builds strategic collaborations and active partnerships with the management teams of its client and investment portfolio companies to build healthcare market leaders. Mann Healthcare fulfills key management and consulting roles for early- to late-stage healthcare companies, including public and private companies, and leads or arranges investments of private or public equity capital. Mann Healthcare structures engagements and transactions to meet the needs of business owners in many different circumstances. The business needs Mann Healthcare helps address include advisory and management services for building shareholder value through corporate development, including development-stage planning and execution, commercialization planning and execution, company management, expansion and growth, capitalization, and exits.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technical advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, regulatory requirements and the ability to meet them, government agency rules and changes, and various other factors beyond the Company's control.
CONTACT: Advanced Medical Isotope Corporation James C. Katzaroff (509) 736-4000 6208 W. Okanogan Ave. Kennewick, WA 99336