Dallas, Texas (December 21, 2011) – StockGuru Shines its Spotlight on PositiveID Corporation (OTCBB: PSID), a developer of medical technologies for diabetes management and molecular diagnostic systems. The Company announced on December 19, 2011, that it has entered into a non-binding Letter of Intent to sell non-core assets including the Company’s VeriChip and Health Link businesses. This asset sale completes the Company’s restructuring efforts, including its new management team, allowing it to focus on its core strategies of diabetes management and rapid biological detection. PositiveID Corporation closed on December 20, 2011, at $0.16, trading in a fifty-two week range of $1.09 – 0.12.
PositiveID expects the sale to VeriTeQ Acquisition Corporation (“VeriTeQ”), an entity owned by Scott R. Silverman, PositiveID’s former Chairman and CEO, to close by year-end. The potential sale is subject to approval by a special committee of PositiveID’s board of directors, and consideration to the Company includes a note for $200,000, a continuing interest of 10% in VeriTeQ, possible future royalty payments from technology licenses, and a shared services agreement. PositiveID will use any future proceeds from the sale for the continued development of its diabetes management and rapid biological detection products. The shared services agreement will reduce the Company’s annual cash burn by approximately $400,000, which, in combination with the other restructuring actions taken over the past several months, reduces the Company’s total cash burn by over $1.2 million annually.
The sale will include assets that are not related to the Company’s diabetes management or molecular diagnostic products. PositiveID will divest the VeriChip business, including an implantable radio frequency identification microchip for patient identification, and the Health Link personal health record, which assets the Company has not marketed for over two years. The VeriChip business does not include GlucoChip™, PositiveID’s glucose-sensing microchip currently under development, and the assets being sold are expressly prohibited from being used for blood glucose detection or diabetes management.
PositiveID Chairman and CEO William J. Caragol, said, “This sale of non-core assets, which have not been a part of our focus for the past couple of years, will enable PositiveID to continue to focus our efforts on our key areas of growth. We expect to launch our FDA-cleared iglucose system in early 2012 and continue to position our MicroFluidic Systems subsidiary and our M-BAND early bio-threat warning system for potential contract awards from the federal government, including the opportunity to participate in the $3 billion BioWatch procurement.”
PositiveID’s diabetes management products under development include GlucoChip; Easy Check™, a non-invasive breath glucose detection device; and the iglucose™ glucometer, a blood glucose meter with PositiveID’s FDA-cleared iglucose technology built inside the device.
About PositiveID Corporation
PositiveID Corporation develops unique medical devices and molecular diagnostic systems, focused primarily on diabetes management, rapid medical testing and airborne bio-threat detection. Its wholly-owned subsidiary, MicroFluidic Systems, is focused on the development of microfluidic systems for automated preparation of and performance of biological assays. For more information on PositiveID, please visit www.PositiveIDCorp.com.
Statements about PositiveID’s future expectations, including the likelihood that the asset will complete the Company’s restructuring and result in reduction in annual cash burn of over $1.2 million; the likelihood that the asset sale completes the Company’s restructuring efforts, including its new management team, allowing it to focus on its core strategies of diabetes management and rapid biological detection; the likelihood that the sale to VeriTeQ will close by year-end; the likelihood that the sale will be approved by a special committee of PositiveID’s board of directors; the likelihood that the note will be repaid; the likelihood that the Company will have a continuing interest of 10 % in VeriTeQ; the likelihood that the Company will receive future royalty payments from technology licenses and a shared services agreement; the likelihood that the shared services agreement will reduce the Company’s annual cash burn by approximately $400,000, which, in combination with the other restructuring actions taken over the past several months, reduces the total cash burn resulting from restructuring actions taken over the past several months by over $1.2 million annually; the likelihood that PositiveID will use the future proceeds, if any, from the sale for the continued development of its diabetes management and rapid biological detection products; the likelihood that this sale of non-core assets will enable PositiveID to continue to focus its efforts on its key areas of growth; the likelihood the Company will launch its FDA-cleared iglucose system in early 2012 and continue to position its MicroFluidic Systems subsidiary and M-BAND early bio-threat warning system for potential contract awards from the federal government, including the opportunity to participate in the $3 billion BioWatch procurement.; and all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and PositiveID’s actual results could differ materially from expected results. These risks and uncertainties include PositiveID’s ability to successfully complete the sale of non-core assets; the likelihood that the non-core asset sale will result in any proceeds; the Company’s ability to commercialize iglucose; the Company’s ability to position its MicroFluidic Systems subsidiary and M-BAND early bio-threat warning system for potential contract awards from the federal government, including a possible $3 billion BioWatch procurement; as well as certain other risks. Additional information about these and other factors that could affect the Company’s business is set forth in the Company’s various filings with the Securities and Exchange Commission, including those set forth in the Company’s 10-K filed on March 25, 2011, and 10-Qs filed on May 13, 2011, August 15, 2011, and November 14, 2011, under the caption “Risk Factors.” The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.
To get free alerts on this and other similar stocks, please register here:
What is the StockGuru Spotlight?
Many companies covered in The StockGuru Spotlight have positive increases in both volume and share price. While this is not true in all cases, StockGuru strives to cover companies in The StockGuru Spotlight that are worth of our readers’ attention.
StockGuru looks for potential break-out candidates in The StockGuru Spotlight. Many of these companies have had recent news and appear to be getting the attention of investors. StockGuru does not typically feature companies in The StockGuru Spotlight that are compensating StockGuru for this coverage. There are times when StockGuru covers a stock in The StockGuru Spotlight that had previously compensated Stockguru. Where that is the case, a proper disclosure is included below. StockGuru and its partners, employees and writers never hold shares, short positions, warrants or any other current position in a stock featured in The StockGuru Spotlight.
To feature a company in The StockGuru Spotlight please contact the Publisher at firstname.lastname@example.org. If our reader is a key person for a publicly traded company, StockGuru can consider that company for either a StockGuru Spotlight or a StockGuru Profile. Please contact the StockGuru Publisher John Pentony at this email address: email@example.com.
Stockguru.com (“SG”) provides its members with the latest news, press releases, and trade alerts for all the companies highlighted on the site StockGuru.com. SG utilizes information believed to be reliable herein prepared all material. The information contained herein is not guaranteed by SG to be accurate, and should not be considered to be all-inclusive. The owner, publisher, editor and their associates are not responsible for errors and omissions. SG encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and SG makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies or the information contained herein. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. SG is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on http://www.Stockguru.com or mentioned herein.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected”, “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and SG undertakes no obligation to update such statements. StockGuru is occasionally compensated for coverage. When this is the case, SG clearly indicates this with a disclosure of all compensation received in the past and present. Additionally SG also discloses any anticipated compensation in the future. Compensation is typically in cash. Sometimes a company pays SG in restricted shares. Pentony Enterprise and its associated companies does not take free trading shares for any reason at anytime. StockGuru is not a registered investment adviser or a broker-dealer. StockGuru makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
John Pentony, Publisher, Stockguru.com
Tel: +1 469 252 3031