Miraculins Provides Update on Strategic Review Process

Miraculins Inc. (TSXV:MOM) announced that pursuant to the strategic review process the Company has been undertaking, it will retain ownership of its Scout DS® lead technology. The Company also announces that it has made changes to its business plan and operations in order to continue to pursue a refocused commercialization strategy.
As quoted in the press release:

The Company’s Scout DS® diabetes screening device is the first non-invasive diabetes testing system designed to provide a highly sensitive and convenient method for measuring diabetes related biomarkers in the skin, the accumulation of which are accelerated by abnormal blood sugar levels and oxidative stress. Unlike current testing methods, a Scout DS® test requires no blood draw, no fasting, and no waiting for a lab result. The product has been used and validated in thousands of patients around the world.

New Business Strategy

As a result of capital markets that continue to be challenging, the Company has developed a new business plan that will dramatically reduce its need for capital. The plan calls for the Company to achieve this by changing its core focus to manufacturing the Scout DS® device in the most economically feasible way possible, and to market exclusive territorial license rights to the Scout DS® to qualified third parties well positioned in their regional market segments.

The Company’s previous business plan was to both manufacture the Scout DS® device and to play a lead role in establishing and proving business models in various market segments, including developing international markets for the Scout DS®. In order to have continued fully executing this plan, the Company would have needed to access a significant amount of additional working capital. However, due to the Company’s current share price and resulting market capitalization, and overall capital market conditions, the previous business plan can no longer be supported.

The new business plan includes validating qualified licensing partners who will be responsible to invest in developing geographically defined markets under the guidance and direction of the Company. Since the Company acquired the Scout DS®, several pilots have been conducted by the Company in the pharmacy and employee workplace screening market segments. The Company will use the data, experience and knowledge it has gained about these market segments in order to provide general direction and guidance to newly established licensing partners. The new licensees would be responsible for all market development costs for their given territory and all costs related to regulatory approval in any given market (if required) under the direction of the Company.

The Company plans that its main revenue stream will be generated from the sale or rental of the Scout DS® devices (including ongoing trailer fees per test), as well as from receipt of territorial license fees, and the ongoing sale of related Scout DS® products and services.

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