ALBUQUERQUE, N.M., Dec. 7 /PRNewswire-FirstCall/ -- Cell Robotics International Inc. (OTC Bulletin Board: CRII) announced today that in cooperation with major shareholders it has developed a capitalization plan to address the first significant stages of market entry for its recently redesigned products and continuation of new product development efforts. The plan includes a working capital credit facility, the private placement of up to 3,400,000 shares of restricted common stock, the private placement of up to 25,000 shares of a newly created class of preferred shares and debt to equity conversion. The Company has executed an agreement with its existing lender, F.A. Voight & Associates, to extend the maturity date of its working capital facility from December 2004 to July 2005 and to increase the facility from $1,000,000 to $2,000,000. The new funding from the working capital facility will be provided in increments of $250,000 approximately every 30 days beginning on December 15, 2004 and ending on March 15, 2005. As a further vote of confidence in the Company, Voight & Associates have also agreed to convert $1,000,000 of the facility into equity after matching equity has been raised by the Company in the private placement. Other lenders have indicated their intent to convert approximately $500,000 of current debt into equity as part of the funding plan. If and when consummated, these actions could reduce the company's debt by approximately $1,500,000. To further strengthen the long tenured relationship between the Company and Voight & Associates the Company has asked, and Mr. Voight has accepted, an appointment to its Board of Directors. Mr. Voight will be leading our renewed efforts and will focus on shareholder and investor communications. The funding plan is intended to simultaneously infuse capital while strengthening the Company's balance sheet. If the plan is fully consummated, it will make available $1,000,000 in working capital included in new funding of up to approximately $2,500,000 from a combination of new common and preferred equity placement and conversion of the facility expansion into equity. The Company intends to apply this capital to marketing and sales initiatives, such as the recently announced entry into the blood bank market, as well as to continue to pursue other activities such as hospitals, prisons and assisted living facilities, which have been inhibited strictly by lack of funding. The Company will also extend the range of application of its laser microscopy products, including the emerging field of nanotechnology. The Company's LaserTweezers(R) microscopy system has already proven useful for nanotechnology applications by at least one leading semiconductor manufacturer. Further product improvements and designs for this field, resulting from ongoing discussions with prominent research scientists, are under development. In addition, the Company intends to pursue remaining tasks in the development of its Lasette product for infant heelsticks. These tasks include market validation of current product designs and finalization of regulatory approvals. Significant fundamental FDA approvals for the new product design have already been received. The Company's "Lasette" is a laser lancing device which is the only FDA cleared needle-free instrument available for collection of capillary blood samples by fingerstick procedure. The Lasette now includes design features specifically directed to clinical applications; including screening tests and point-of-care blood analysis. The P200 is now designed for fast and easy collection of capillary samples of up to 200 microliters (previously 75 microliters). Other improvements include doubling the maximum frequency of use, simplifying its operation and maintenance. These and other improvements make the Lasette P200 especially well suited for applications at all clinical environments. Cell Robotics International, Inc. is a medical laser products company. For further information, please visit the Company's web site at www.cellrobotics.com or www.Lasette.com. This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are "forward-looking statements." Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; risks associated with the development of new products and markets; general competitive factors; the Company's ability to execute its service and product sales plans; the impact of current and future laws and government regulation, as well as repeal or modification of same, affecting the medical device industry and the Company's operations in particular; adequacy of our financial resources; obtaining and maintaining regulatory approval; the ability to retain key personnel and the risks described from time to time in the Company's Securities and Exchange Commission (SEC) filings. For all these reasons, actual results or developments may differ materially from those projected in the "forward-looking statements."
SOURCE Cell Robotics International, Inc.