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Positron Strengthens Balance Sheet; Reports Significantly Reduced Debt Levels

^{Published on 2010-08-02 08:30:15 - Market Wire}
 

INDIANAPOLIS--([ BUSINESS WIRE ])--Positron Corporation (OTCBB:POSC), a molecular imaging and solutions company specializing in Nuclear Cardiology and a leader in Cardiac PET, announced today that the Company has significantly improved its balance sheet, financial strength and flexibility as a result of resolving several outstanding debts, including a settlement with certain investors relating to a prior financing transaction.

"Since the end of the first quarter the Company has worked diligently to take the necessary steps to make Positron financially stronger for the future. As a result, Positron has emerged from this process a stronger, more focused company with improved liquidity and manageable debt levels"

As a result of management efforts, Positron has effectively reduced its debt by over $6 million, from approximately $7 million at the end of the first quarter, and expects to be nearly debt-free within the upcoming weeks.

"Since the end of the first quarter the Company has worked diligently to take the necessary steps to make Positron financially stronger for the future. As a result, Positron has emerged from this process a stronger, more focused company with improved liquidity and manageable debt levels," said Patrick G. Rooney, Chairman and Chief Executive Officer of Positron. aWith a stronger balance sheet we are eager to continue forward as a far more competitive enterprise a" one that is well-positioned for strategic acquisitions and organic growth in the year ahead.a

The Company noted that among the outstanding debts it was able to resolve, was a settlement with certain investors who had originally loaned Positron $1.3 million in May 2006, in the form of callable secured convertible notes. In settlement of the notes, plus interest, penalties and late fees, Positron paid the investors $1.0 million in cash and 8.5 million shares of common stock.

The Company also noted it will be filing a Form 8-K in association with todaya™s announcement.

About Positron: Positron is a molecular imaging company focused on Nuclear Cardiology. Positron utilizes its proprietary product line to provide unique solutions to the Nuclear Medicine community ranging from imaging to radiopharmaceutical distribution. Positron products include: the Attriusa", a PET imaging device; the Pulse®, a SPECT imaging device; the Nuclear Pharm-Assist®, an automated radiopharmaceutical distribution device; and the Tech-Assista", a radiopharmaceutical injection shield. More information about Positron is available at [ www.positron.com ].

Forward Looking Statements: Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance and may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Positron Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Positron assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as "Risk Factors" in our filings with the Securities and Exchange Commission.

For further information please contact Positron Corporation at (317)576-0183.