NeoMed invests in CytoCore

Mar 11 2010

CytoCore Inc. (OTCBB:CYOE), the developer of cost-effective products used in the practice of cytology for the detection and diagnosis of cancer and cancer related diseases, announced today that NeoMed has made an investment in CytoCore Inc.

“Since 2001, we have been intrigued by the potential of CytoCore’s innovative technologies and products and the large markets these technologies and products address.”

NeoMed Management, an international investment firm, is exclusively focusing on the healthcare and life science industry. Founded in 1996, NeoMed has established four funds, with total committed capital exceeding $200 million.

NeoMed invests in young companies with outstanding growth prospects. Portfolio companies typically develop innovative products addressing inadequately served medical needs in the following industry sectors: pharmaceuticals, biotechnology drugs, diagnostics, medical devices and instruments.

In settlement of outstanding litigation related to the issuance of notes by Molecular Diagnostics Inc., the former name of CytoCore Inc. and related term sheets in 2001 and 2002, NeoMed has agreed to accept 2,658,800 restricted shares valued at $.50 per share along with 217,000 warrants with an exercise price of $.50 per share.

Robert F. McCullough Jr., CEO of CytoCore Inc., commented, “We are happy to settle all outstanding issues and reduce our liabilities by $1,329,400 related to the previously issued notes and accrued interest. We also are happy to utilize NeoMed’s network and expertise with regard to the development of young companies’ growth prospects in addressing inadequately served medical needs as we develop and implement `CytoCore Solutions'.”

Erik Amble, Managing Partner of NeoMed, added, “Since 2001, we have been intrigued by the potential of CytoCore’s innovative technologies and products and the large markets these technologies and products address.”