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Tissue Genesis is leveraging its expertise in adipose-derived cell isolation technology with strategic partners in select, high-potential markets. The first examples of this approach are our exclusive distribution and license agreements with Bioheart, Inc. of Sunrise, Florida for the cardiac market, SpineSmith, LP of Austin, Texas for the spine market and Vet-Stem, Inc. of Poway, California for the veterinary market.
The Company’s licensing model, as executed with Bioheart and Vet-Stem, is to grant the leaders in each market with an exclusive right to distribute the Company’s products in that market. In addition to revenue from the sale of TGI 100™ kits, TGI 1000™ systems and disposables, the licensees will pay the Company a royalty on their net sales of licensed products and disposables. Instead of trying to extract the maximum price on products and royalties from the licensees, Tissue Genesis has also obtained stock and warrants from the licensees that vest upon the licensees meeting certain milestones in their successful use of the Company’s technology and products. Through this stock ownership in its licensees, the Company expects to share in its licensees’ success. Additionally, each licensee has granted the Company exclusive rights to any improvements they make to the Company’s technology, which the Company will grant all the other licensees in their respective markets, effectively creating a pool of researchers at all its licensees, furthering the Company’s technology.
Tissue Genesis, Inc.
