Milestone Scientific Announces Its Milestone Medical Inc. Subsidiary Has Raised $1.5 Million From European Investors

LIVINGSTON, NJ--(Marketwired - October 30, 2013) - Milestone Scientific Inc. (OTCQB: MLSS), the recognized leader in advanced, computer-controlled injection technologies, today announced its Milestone Medical Inc. subsidiary has sold $1.5 million of its common stock in a private placement to European institutional and other investors. Closing of the transaction is subject to listing of the shares on the New Connect Market of the Warsaw Stock Exchange. WDM acted as offering agent and leading financial advisor on the transaction. 

Prior to the financing, Milestone Scientific Inc. owned 50% of Milestone Medical Inc. (10 million shares out of a total 20 million shares issued and outstanding). As a result of the financing, Milestone Medical issued an additional 1 million shares to European institutional and other investors (10 entities) at $1.50 per share, representing a post-money valuation of approximately $31.5 million.

Milestone Medical Inc. was formed two years ago. Milestone Scientific Inc. formed the joint venture with Beijing 3H (Heart-Help-Health) Scientific Technology Co., Ltd. (Beijing 3H) for the development, commercialization, manufacturing and marketing of Milestone's epidural and intra-articular injection instruments. At the time, Milestone Scientific held a 50% interest in the joint venture, while a group of shareholders, including the principal shareholders of Beijing 3H and the founder of a large supplier to Milestone Scientific, held the remaining 50% interest in the joint venture. 

In forming the joint venture, Milestone Scientific contributed an exclusive worldwide royalty-free license to use its patents for epidural and intra-articular applications to Milestone Medical and the other shareholders of Milestone Medical contributed $1.5 million to Milestone Medical to develop and design the prototypes using Milestone's CompuFlo® technology and disposables. Beijing 3H will handle distribution of the products in the People's Republic of China, Macao, Hong Kong and other regions of Asia. Milestone Scientific will oversee distribution in North America and Milestone Medical Inc. will handle the distribution in other international markets. Development of both the epidural and intra-articular instruments is now complete. Milestone Scientific is currently pursuing marketing approval for both instruments in the US and European Union.