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Former Chairman and CEO
Purchases Controlling Interest in VeriChip Corporation
Scott R. Silverman acquires 5.4
million shares from Digital Angel Corporation
VeriChip purchases all
intellectual property rights related to human implantable RFID
business including glucose-sensing microchip patent from Digital
Angel
DELRAY BEACH, FL– November 12, 2008 –VeriChip
Corporation (the “Company”) (NASDAQ: CHIP), a provider of radio
frequency identification (RFID) systems for healthcare and
patient-related needs, today announced that R&R Consulting Partners,
LLC, an entity wholly owned by its former Chairman and Chief
Executive Officer, Scott R. Silverman, has purchased Digital Angel
Corporation’s (“Digital Angel”) (NASDAQ: DIGAD) 5.4 million shares
of VeriChip common stock. Combined with Silverman’s existing
holdings of 861,000 shares he now controls 6.2 million shares, or
53%, of the Company.
In a separate transaction, VeriChip has
purchased from Digital Angel all patents related to an embedded
bio-sensor system for use in humans and the assignment of any rights
of Digital Angel under a development agreement associated with the
development of an implantable glucose-sensing microchip. The Company
also received covenants from Digital Angel and its subsidiary that
will permit the Company to use Digital Angel’s intellectual property
related to the Company’s VeriMed Health Link business without
payment of ongoing royalties, as well as inventory and a limited
period of technology support from Digital Angel.
Silverman will re-assume the role
of Chairman of VeriChip’s Board of Directors, replacing Joseph
Grillo, and will oversee the day-to-day operations of the Company.
As of today, the Company has over $8 million of cash and restricted
cash and no debt.
Silverman commented on the transaction,
“The prior controlling stockholder of the Company preferred a
different path for the Company, which could have jeopardized the
value of our FDA-cleared, first-of-a-kind medical device for patient
identification. I couldn’t let that happen.
Our stockholders and the medical community believe in the
value of our technology and its ability to evolve patient care and
medical record access. I am eager to reignite
the VeriMed Health Link business including our patient, hospital and
physician outreach activities. We will focus once again on our core
geographies and ensure our important relationships with advocacy
groups are maintained and successful. Furthermore, we will continue
the development of the glucose-sensing microchip in conjunction with
RECEPTORS LLC, who is making good progress. In the near future, we
will update the investor community on the results of our Phase I
development of the glucose sensor.”
Silverman continued, “In addition to
restoring our VeriMed Health Link patient identification
application, we will also consider and review other strategic
opportunities. With our strong balance sheet, our NASDAQ listing and
a difficult capital market environment, VeriChip Corporation is
positioned well for growth and opportunities.”
About VeriChip Corporation
VeriChip Corporation, headquartered in
Delray Beach, Florida,
markets its VeriMed™ Health Link System for rapidly and accurately
identifying people who arrive in an emergency room and are unable to
communicate. This system uses the first human-implantable passive
RFID microchip, cleared for medical use in October 2004 by the
United States Food and Drug Administration.
For more information on VeriChip, please
call 1-800-970-2447, or e-mail info@verichipcorp.com. Additional
information can be found online at www.verichipcorp.com.
Statements about VeriChip’s future expectations, including its
ability to reignite the VeriMed Health Link business, maintain
relationships with advocacy groups, focus on core geographies,
develop a glucose-sensing microchip and continue expanding the
business and all other statements in this press release other than
historical facts are "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and as that term is defined in the
Private Litigation Reform Act of 1995. Such forward-looking
statements involve risks and uncertainties and are subject to change
at any time, and VeriChip’s actual results could differ materially
from expected results. Additional information about
these and other factors that could affect the Company’s business is
set forth in the Company’s various filings with the Securities and
Exchange Commission, including those set forth in the Company’s 10-K
filed on March 28, 2008, as amended, under the caption “Risk
Factors.” The Company undertakes no obligation to update or release
any revisions to these forward-looking statements to reflect events
or circumstances after the date of this statement or to reflect the
occurrence of unanticipated events, except as required by law.
###
Contact:
Allison Tomek
Phone: (561) 805-8000
atomek@verichipcorp.com
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