Cytonics Announces Letter of Intent to Extend the APIC Sales Agreement and Enter International and Veterinary Markets

Cytonics Corporation and Sygenx, Inc. have signed a Letter of Intent to assign Sygenx an exclusive license to manufacture and sell the APIC system in the international and domestic markets. Sygenx’s distribution arm, Catalyst Sales & Marketing, was recently acquired by CareStream America, a Canadian-based international distributor of medical devices with a sales force of over 50 domestic sales reps.

CareStream America has operational and regulatory expertise in many foreign jurisdictions, including Canada, the EU, and South East Asia. Sygenx has also expressed interest in acquiring a license to sell the APIC system in the veterinary market, and is currently establishing a veterinary distribution company, backed by prominent equine orthopedic physicians, that will target horse breeders and trainers. The successful negotiation of these licensing deals will place APIC in both the human and veterinary markets (both domestically and abroad) which will result in a substantial increase Cytonics’ revenues.

The terms of the deal are as follows:
o    $900,000 will be paid upfront to Cytonics as a license acquisition fee
o    Cytonics will receive 10% of gross sales of APIC in the human market
o    Cytonics will receive 2-5% of gross sales of APIC in the veterinary market
o    Cytonics will be guaranteed quarterly minimum payments in perpetuity