ADM Tronics Enters US Medical Market by Acquiring Assets of Electropharmacology.NORTHVALE, N.J.--(BUSINESS WIRE)--May 28, 1998-- In a major asset purchase agreement, ADM See add/drop multiplexer. (language) ADM - A picture query language, extension of Sequel2. ["An Image-Oriented Database System", Y. Takao et al, in Database Techniques for Pictorial Applications, A. Blaser ed, pp. 527-538]. Tronics (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on - ADMT ADMT Active Directory Migration Tool ADMT Air Dry Metric Ton ADMT Automated Data Management Tool ) has entered the US medical device market by signing an agreement to acquire the SofPulse device operating assets Operating Assets Another term for working capital. from Electropharmacology, Inc.(EPHI EPHI Electronic Protected Health Information (HIPAA) : Nasdaq OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ), the developer and manufacturer of SofPulse, an FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. cleared, non-invasive, electronic therapy device. The agreement results in ADM Tronics realizing revenues from the sale and rental of SofPulse devices to physicians and medical facilities in the U S along with securing an established network of medical device distributors. ADM Tronics believes this network may also result in more rapid distribution of ADM Tronics' Sonotron device in the US, if it is cleared for marketing by the FDA. SofPulse, a pulsed electromagnetic stimulation device for adjunctive use in the palliative treatment of postoperative edema edema (ĭdē`mə), abnormal accumulation of fluid in the body tissues or in the body cavities causing swelling or distention of the affected parts. and pain in superficial soft tissues, has been distributed to physicians and medical facilities in a number of states. ADM Tronics plans to expand distribution of the SofPulse into additional areas by appointing new domestic distributors and using its current Sonotron distributors in foreign countries to distribute SofPulse. "This acquisition is an exciting and excellent fit for our company and helps expedite our strategic growth plan," stated Andre' Di Mino, COO of ADM Tronics, "We've acquired a ready-made distribution network in the US for our own medical devices and at the same time we will enjoy added revenues from current SofPulse customers, which, we believe, can be substantially increased." According to Electropharmacology revenues from SofPulse over the last 12 months have exceeded $1,500,000. Under the agreement, which is subject to Electropharmacology shareholder approval, ADM Tronics will acquire the exclusive, worldwide right under Electropharmacology's SofPulse technology to manufacture and market SofPulse and certain other related assets such as new prototypes, plans and manufacturing equipment. In addition, ADM Tronics will purchase 345 SofPulse devices of which 101 are under rental agreements, 49 are being used in clinical trials or in promotional efforts by reps and distributors plus an inventory of 195 new and refurbished units. ADM Tronics has agreed to pay $150,000 in cash, 2,925,000 shares of ADM Tronics' common stock and, depending on sales targets being reached, an option to purchase 1,500,000 additional shares at a purchase price of $.425 per share. ADM Tronics has agreed to register the shares with the SEC subject to certain lockup See hang and abend. provisions. ADM Tronics is a technology based developer and manufacturer of a diversified line of products including patented, non-invasive therapeutic electronic medical devices; water-based, non-polluting recyclable chemical products; and, innovative dermatological products.
CONTACT: ADM Tronics
Andre' Di Mino, 201-767-6040
Fax: 201-784-0620
e-mail andre@admtronics.com
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