Cascade Technologies Corp. announced today that it has completed the acquisition of privately owned Spectral Molecular Imaging Inc. (SMI), a private development-stage medical imaging device company. Cascade issued approximately 31,744,000 shares of common stock for the merger, representing about 54% of Cascade’s common stock after giving effect to post-merger transaction adjustments. Post-merger transaction adjustments include share cancellations by a principal stockholder and shares issuable on conversion of up to $1,150,000 of convertible notes placed on behalf of Cascade with a limited number of accredited investors concurrently with the merger closing.
SMI now becomes a wholly owned subsidiary of Cascade, allowing Cascade to benefit from the development of SMI’s proprietary spectral-optical-imaging technology for improved clinical diagnostics, primarily in the field of cancer pathology. SMI is developing non-invasive devices that use its patented technology, originally created for satellite reconnaissance, to provide early diagnoses of cancer and precancerous conditions. These devices utilize high-resolution spectral-imaging for the identification and analysis of certain molecular, cellular, and tissue features, and are expected to enable the early detection and more reliable diagnosis of melanoma, lung cancer, and pre-cancerous conditions. This should significantly improve patient outcomes while substantially reducing overall costs.
The new technology has multiple applications, end-user markets, and potential revenue streams. Initially, the company will develop three products over the next 4 to 5 years:
• MelaSpect™, for the early detection of skin cancer
• EndoSpect™, for improved tissue evaluation during gastrointestinal and pulmonary endoscopy
• OxySpect™, for mapping tissue oxygenation during and after surgical intervention
The company also intends to provide services related to its primary products, including software modules and maintenance services.
Cascade’s President, Erik Lindsley, commented on the acquisition. “The founders of SMI have acquired and developed highly innovative and potentially game-changing medical technology in the cancer detection market. Our objective is to take that existing technology, complete the rigorous development and regulatory cycle, and commercialize it, initially in the skin cancer market and later in other applications. It is our desire to rapidly position Cascade effectively to compete in the worldwide marketplace for innovative and effective medical diagnostics.”