|Positron's news should stimulate shares|
|Wednesday, 13 July 2011 08:23|
Positron, the leading molecular imaging company specializing in the field of nuclear cardiology. They recently executed a Memorandum of Understanding (“MOU”) with the City of Noblesville, Indiana to relocate its corporate headquarters, research & development and product manufacturing facilities to Noblesville. Included in the MOU are economic incentives for the development of the Company’s high energy 70 MeV cyclotron project and radiopharmaceutical manufacturing facility also to be located in Noblesville.
Positron is proposing to make a capital investment of approximately $55 million dollars for this project in conjunction with significant economic development incentives from the City of Noblesville and the State of Indiana, as well as various other project financing opportunities.
Under the terms of the resolution, the City of Noblesville will provide Positron with certain incentives, in the amount of up to $6.7 million, for the acquisition of economic development property. The $6.7 million will come in the form of Economic Development Bonds, which utilizes tax increment from the project. The bonds will be issued in several series commensurate with Positron’s achievement of certain milestones in conjunction with the Company’s securing commitments of financing totaling $42 million.
The City also agrees to support the project by pursuing the issuance of tax exempt Midwestern Disaster Area Bonds, which are non-recourse to the City, including but not limited to, supporting Positron in the designation of the Positron project site as a designated Midwestern Disaster Area by the Governor of Indiana. The Company may apply for access to as much as $40 million of Midwestern Disaster Area Bonds as early as July 19th.
In addition to the bonds financing, Positron intends to seek capital through the private offering of a minority equity stake, of up to 49% in its cyclotron project, which will be developed in Positron Isotope Corporation, an Indiana corporation and a wholly owned subsidiary of Positron.
Patrick G. Rooney, CEO of Positron stated: “The partnership we are establishing with the City of Noblesville is a considerable one and a long-term strategic investment we are both fully committed to. With the commencement of this project, Positron’s business objectives are being realized as designed.” Rooney concluded “key initiatives in our approach have been focused towards our ability to offer radiopharmaceutical consumables to customers in both the cardiac PET and SPECT markets; a critical component for our expansion, strength and long-term strategy was to secure a supply of isotopes. The addition of a company owned cyclotron allows Positron to expand vertically with the ability to offer products and security that our full cardiac imaging and radiopharmaceutical solutions will be available to our customers for the future.”
A televised news report on the positive news catalyst for the company appears below: