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8-K - FORM 8-K - Axogen, Inc. | c15781e8vk.htm |
Exhibit 99.1
LecTec Corporation Reports Settlement With Prince of Peace Enterprises.
April 26, 2011
TEXARKANA, Texas(BUSINESS WIRE)LecTec Corporation (OTCBB: LECT) announced today that LecTec has
settled its pending patent infringement lawsuit against Prince of Peace Enterprises. Prince of
Peace has agreed to make a one-time, $225,000 payment to LecTec for a non-exclusive license to
LecTecs U.S. Patent Nos. 5,536,263 and 5,741,510, and any other LecTec patents that claim priority
from these two patents, for use in connection with any product or process sold or used by Prince of
Peace, other than products covered by exclusive licenses previously granted to other companies.
Such settlement proceeds are before paying contingent legal fees and prior to any tax effect.
Greg Freitag, LecTecs CEO stated: This settlement completes the legal action that LecTec began in
2008. With this chapter closed, the company is squarely focused on putting its cash and public
status to work through our merger and acquisition strategy. Remaining LecTec assets other than
cash continue to be evaluated as to the ability to provide any additional value to our
shareholders. We appreciate the patient support provided by the LecTec shareholders and believe we
will be successful as we continue forward with our business plan.
About LecTec
LecTec is an intellectual property (IP) licensing and holding company with approximately $9
million in cash, cash equivalents, and Federal Deposit Insurance Corporation (FDIC) insured
certificates of deposit at December 31, 2010. LecTec is pursuing a merger and acquisition strategy
which is intended to leverage its cash asset and improve shareholder value and liquidity. LecTec
holds multiple domestic and international patents based on its original hydrogel patch technology
and has filed patent applications on a hand sanitizer patch. LecTec also has a licensing agreement
(Novartis Agreement) with Novartis Consumer Health, Inc., under which LecTec receives royalties
from time to time based upon a percentage of Novartis net sales of licensed products. An effort
to monetize LecTecs intellectual property is also ongoing. LecTecs website is www.lectec.com.
Cautionary Statements
This press release contains forwardlooking statements concerning possible or anticipated future
results of operations or business developments, which are typically preceded by the words
believes, wants, expects, anticipates, intends, will, may, should, or similar
expressions. Such forward-looking statements are subject to risks and uncertainties which could
cause results or developments to differ materially from those indicated in the forwardlooking
statements. Such risks and uncertainties include, but are not limited to, LecTecs dependence on
royalty payments from Novartis Consumer Health, Inc., which is selling an adult vapor patch
licensed from LecTec, LecTecs dependence on key personnel and Board of Director members, the
issuance of new accounting pronouncements, information disseminated on internet message boards from
posters expressing opinions that may or may not be factual, the availability of opportunities for
license, sale or strategic partner agreements related to patents that LecTec
holds, limitations on market expansion opportunities, and other risks and uncertainties detailed
from time to time in LecTecs filings with the Securities and Exchange Commission, and particularly
as described in the Risk Factors included in our Form 10K for the year ended December 31, 2010.
Contacts
LecTec Corporation, Greg Freitag, CEO/CFO (903) 832-0993
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