CAMBRIDGE, Mass., May 2, 2013 (GLOBE NEWSWIRE) -- Tauriga Sciences, Inc. (OTCQB:TAUG) ("Tauriga" or the "Company"), a life sciences holding company creating a diversified portfolio of medical technology assets, today announced that it has signed a Memorandum of Understanding ("MOU") with Cambridge, Massachusetts-based Constellation Diagnostics Inc. ("Constellation"). Under terms of the MOU, Tauriga and Constellation will establish a Joint Venture Partnership ("Joint Venture") to develop and commercialize a novel, imaging-based diagnostic technology for use in predictive and preventative oncology. The technology is focused on early and comprehensive diagnoses for prevention of certain skin cancers. Constellation has already begun product development in collaboration with professors at the Massachusetts Institute of Technology ("MIT") and Harvard University ("Harvard"). The goal of the Joint Venture is to complete a working prototype during calendar year 2013 and subsequently submit for FDA approval through the 510K regulatory path. In preparation for the public announcement of its technology platform and product features (expected in mid-May), Constellation is constructing a corporate website which will also provide an overview of the market potential and value proposition.
Thus far Tauriga has invested an initial $100,000 USD into Constellation in exchange for equity, and the Company plans to invest additional capital based on milestones, the terms and conditions of the MOU, and any subsequent definitive agreement. In aggregate, Tauriga has the potential to acquire up to a 35% equity interest in Constellation based on two proposed tranches of future investment.
Both companies expect to progress to a definitive Joint Venture Agreement within the next 90-120 days with an accompanying investment tranche of $1,000,000 USD into Constellation by the Company. The principal use of proceeds of the $1,000,000 USD investment tranche is to complete the demonstrative prototype of the system. Upon completion of the prototype, the MOU stipulates for a milestone-based investment tranche of up to $1,400,000 USD by the Company. In total the Company can acquire up to a 35% equity stake in Constellation if the full total of $2,500,000 USD is invested into Constellation pursuant to the terms of the proposed Joint Venture.
Tauriga's Chief Operating Officer, Dr. Stella M. Sung, commented, "The Company is excited to partner with Constellation Diagnostics Inc. and its collaborators at world class academic institutions to develop a commercially-viable product that utilizes next generation imaging technologies to enable early and thorough detection of skin cancers. Early detection makes an enormous difference in survivability, and this technology would address an important medical need."
Constellation's President, Christian Bailey, stated, "Our team is enthusiastic about partnering with Tauriga Sciences because they share our vision and our passion for developing high-impact technologies. We expect this project to have significant impact on predictive and preventive oncology. Our chances for success are greatly enhanced with a dedicated partner supporting us with both capital and expertise as we focus on product development."
About Tauriga Sciences, Inc.:
Tauriga Sciences, Inc. is a life science holding company that focuses on proprietary biotherapeutics and diagnostics, novel medical devices and consumer healthcare. The mission of the Company is to acquire and build a diversified portfolio of medical technology assets that is capital efficient and of significant value to the shareholders. The Company's business model includes the acquisition of licenses, equity stakes, rights on both an exclusive and non-exclusive basis, and entire businesses. Management is firmly committed to building lasting shareholder value in the short, intermediate, and long terms. The Company's new corporate website can be found at www.taurigasciences.com.
About Constellation Diagnostics, Inc.
Constellation Diagnostics Inc. is developing a novel, imaging-based diagnostic technology for use in predictive and preventative oncology. The technology is focused on early and comprehensive diagnoses for prevention of certain skin cancers.
CONTACT:
Mr. Seth M. Shaw
Chairman & Chief Executive Officer
Tauriga Sciences, Inc.
www.taurigasciences.com
New York: +1-917-796-9926
Montreal: +1-514-840-3697
Email:[email protected]