American CryoStem has licensed to HIT the exclusive rights to utilize the Company's Standard Operating Procedures (SOP's) to create and market the Company's ATGRAFT(TM) tissue storage service in Hong Kong. The financial terms call for annual minimum licensing payments as well as additional royalty payments based on gross revenue. HIT will also purchase CRYO's ACSelerate(TM) storage media and other products necessary for clinical collection, processing and storage of Adipose Tissue. Upon execution CRYO received the initial payment of the minimum annual licensing fee with the balance of first year licensing payments due prior to full commercial launch of the ATGRAFT(TM) service in Hong Kong. The formal licensing agreement is scheduled for finalization within 90 days.
"We are pleased to announced this international licensing transaction with Health Innovative Technologies and look forward to working closely with HIT's scientific team in Hong Kong to integrate our tissue storage and processing platform into their existing laboratory services," commented John Arnone, CEO of American CryoStem. Mr. Arnone continued, "We believe our Adipose Tissue platform will be the foundation for establishing licensed laboratory facilities for future stem cell applications developed and deployed by CRYO and others globally. HIT's current platform of anti-aging and cosmetic healthcare services makes ATGRAFT(TM) an excellent addition to their list of services."
Mr. Kenneth Chan, Chairman of HIT commented, "We have been a long term admirer of American CryoStem's Adipose Tissue research since visiting their laboratory facility in the U.S. We believe their validated tissue processing and storage protocol will create a natural alternative to artificial fillers in the Asian marketplace. Creating an inventory of stored fat tissue for patients to use will greatly increase patient retention and loyalty to their physician, thus, allowing a sustainable business model. Historically, the Hong Kong and greater China marketplace follows the US and Europe; in terms of adipose tissue and fat grafting, this technology gives us great potential to expand our network of doctors and medical facilities to cryopreserve their patient's adipose tissue. We believe, that the introduction of American CryoStem's technology and their ATGRAFT(TM) product, will create a tremendous business opportunity for us."