Cytori, Lorem Vascular Pty. Ltd. sales and marketing update

Cytori granted newco Lorem exclusive rights to commercialize Cytori's Celution System for autologous re-implantation or re-infusion of a patient's adipose-derived regenerative cells for all indications, excluding alopecia and aesthetics, in China, Malaysia and Australia. Cytori said Lorem was formed around Cytori's technology and cell therapy and is backed by an investment group led by Malaysian entrepreneur Kian Thiam Lim, who became a director of Cytori. The partners plan to target the cardiovascular, renal and diabetes markets. Cytori will receive $31 million in equity and initial purchase commitments and is eligible for up to $500 million in milestones for the 30-year exclusive license. The $31 million is comprised of $24 million in exchange for 8 million shares of Cytori common stock at $3 per share and a $7 million order of Celution devices and consumables. The equity will be closed in two tranches: a $12 million payment was received on Nov. 7 and a $12 million payment will be received within 60 days of Nov. 4, when the deal was announced. The $7 million order comprises a $2 million order placed immediately and a $5 million order to be placed following regulatory approval in China, which is expected in 2014. Cytori is eligible to receive a $10 million milestone payment each time Lorem achieves a gross revenue milestone of $50 million, until the $500 million maximum payable license fee is reached. ...