WAKEFIELD, Mass.--(BUSINESS WIRE)--Sept. 5, 2003--Implant Sciences
Corporation (AMEX: "IMX", "IMX.WS") today announced that it closed a
$2,000,000 follow on private financing with Laurus Funds on August 28,
2003. The Company issued 200,000 shares of Series B 5% Cumulative
Convertible Preferred Stock, which can be converted into the Company's
common stock at a fixed conversion price, up to a maximum of
approximately 390,000 shares, over an eighteen (18) month period. The
preferred stock provides for monthly redemptions to be paid at the
option of the Company, subject to certain restrictions, in cash or
shares of the Company commencing on December 1, 2003. In addition,
Laurus was granted a warrant to purchase 70,000 shares of the
Company's common stock at prices between $6.87 and $8.25 per share.
The Company plans to utilize the proceeds from the financing to
complete the commercialization of its hand-held, portable trace
explosives detection system, the development of its breast
brachytherapy technology, and for working capital. The financing
documents will be attached as exhibits to our Annual Report on Form
10-KSB for the fiscal year ended June 30, 2003.
"With this $2,000,000 investment from Laurus Funds we can
accelerate the commercialization of our portable, hand-held explosives
detector product," stated Dr. Anthony J. Armini, President and CEO of
Implant Sciences. "The overall market for explosive-detection
technologies is currently estimated at $1 billion annually and we
continue to believe that our technology is superior to other portable
explosives detection devices. This funding will also enable us to
aggressively focus our resources on our collaboration with the
Memorial Sloan-Kettering Cancer Center brachytherapy physics team in
New York City for the development of a lower energy radiation source
for breast cancer."
David C. Volpe, VP of Strategic Development of Implant Sciences
further commented, "This follow on investment is a direct result of
Laurus' confidence in the technology and resultant products developed
by Implant Sciences. This financing was provided to the Company on
very favorable terms and clearly demonstrates that Laurus is more than
a funding source, rather it has become a valued business partner of
the Company."
David Grin, Fund Manager of Laurus Master Fund, stated, "Since our
initial $2,500,000 investment in October 2002, Implant Sciences'
management has demonstrated its ability to execute its business plan
and develop its technology. We continue to be impressed by the
management team and the potential for the Company's technologies and
look forward to our continuing long-term relationship with the
Company."
About Implant Sciences
Implant Sciences, incorporated in 1984, is using its core ion
technology to develop, manufacture and market products for national
security, industry, and medicine. Under commercial development is a
portable trace explosives detection device to identify explosives,
narcotics and other toxic materials. Implant has received development
grants from the US Army, Navy, Marines and Air Force, and, signed a
cooperative R&D agreement with the Transportation Security
Administration, which facilitates equipment evaluation and new
government contracts. Using its proprietary ion implantation and thin
film coating technologies, Implant also manufactures and markets
radioactive and non-radioactive products for medical use. Implant
derives a portion of its revenues from its radioactive seeds for
treating prostate cancer that are distributed throughout the US by its
direct sales force and MED-TEC, Inc. Implant is also developing
brachytherapy products for the treatment of breast, eye, and other
cancers. Additionally, Implant modifies the surface characteristics of
orthopedic joint implants to reduce polyethylene wear, thereby
increasing the life of the implants.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe",
"estimate", "project", "expect" or similar expressions. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements. Factors that would cause or contribute to such differences
include, but are not limited to, continued acceptance of the Company's
products and services in the marketplace, the ability of the Company
to develop effective new products and receive governmental approvals
of such products, competitive factors, dependence upon third-party
vendors, and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission. By making these
forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of
this release.
CONTACT: Investor contact:
Aurelius Consulting Group:
Ed Sasso, 407/681-8899
Edaurelius@cfl.rr.com
or
Dave Gentry, 407/644-4256
Aurelius@cfl.rr.com
www.runonideas.com
or
Implant Sciences Corporation:
David C. Volpe, 508/523-3141
dvolpe@implantsciences.com
www.implantsciences.com
or
Media contact:
The Investor Relations Group
Lisa Lindberg or Janet Vasquez
Dian Griesel
212/825-3210
SOURCE: Implant Sciences
