TechniScan becomes publicly traded company through reverse merger with Castillo

Oct 20 2009

TechniScan, Inc. (OTCBB: TSNI) (“TechniScan” or the “Company”), a medical device company engaged in the development and commercialization of an automated breast ultrasound imaging system, has become a publicly traded company through a reverse merger with and into Castillo, Inc., a Delaware corporation.

In accordance with the merger agreement, which became effective October 9, 2009, the surviving entity in the reverse merger will be known going forward as TechniScan, Inc., a Delaware corporation. The Company’s common stock is now trading on the OTC Bulletin Board under the symbol “TSNI.”

TechniScan’s imaging system, named Svara™, after the Hindu Goddess of Sound, surrounds the breast in a warm bath of water, which allows ultrasound transducers to transmit sound waves into and through the breast, capturing 3-dimensional images of the interior of the breast. Svara™ is designed to provide physicians with a new, non-invasive, ultrasound imaging tool that will provide detailed information about the physical structures within the breast.

David C. Robinson, President and CEO of TechniScan, said, “Becoming a public company is a significant milestone for TechniScan as we continue to improve the resolution and gather clinical data from our Svara™ WBU™ automated breast imaging system. We expect that our current clinical testing sites in the United States and in Europe will provide us with the data we need for a successful commercial introduction of the system in 2010.”

Robinson continued, “This reverse merger allows TechniScan to become a publicly traded company, which we believe will help us continue to raise the funds needed to make refinements in our imaging system and introduce a commercial version within the next year. We expect that these developments will create broader opportunities for TechniScan, and our European partner, Esaote (www.esaote.com), in the use of automated ultrasound as another effective imaging tool to help radiologists more effectively detect and diagnose breast cancer.”

“In light of October being Breast Cancer Awareness Month,” added Robinson, “I think this is a propitious time for TechniScan to become a publicly traded company.”

TechniScan has raised more than $24 million in equity financing and $5 million in federal grant funding from the National Institutes of Health (NIH) and the National Cancer Institute (NCI), bringing the total raised to approximately $29 million.

TechniScan grew out of the University of Utah, Department of Bioengineering. TechniScan developed the Svara™ technology with the support of the Governor's Office of Economic Development (GOED) Centers for Excellence Program in Utah, the National Institute of Health (NIH), and the National Cancer Institute (NCI). TechniScan’s Warm Bath Ultrasound (WBU™) imaging device (Svara™) is limited by US law to investigational use unless and until cleared by the FDA.

Source: TechniScan, Inc.