On PF Medical, the Company’s majority-owned Polish subsidiary, and Digirad Corporation, a Delaware corporation (“Digirad”), Nasdaq: DRAD, entered into a multi-year Tc- Supplier Agreement (the “Supplier Agreement”) and a Series F Stock Subscription Agreement (the “Subscription Agreement”), (together, the “Digirad Agreements”). The Supplier Agreement became effective upon the completion of the Subscription Agreement. Pursuant to the terms of the Digirad Agreements,

Digirad purchased, in a private placement, shares of PF Medical’s restricted Series F Stock for an aggregate purchase price of which was received on Legal expenses incurred for this offering totaled approximately The share investment made by Digirad constituted approximately of the outstanding common shares of PF Medical. As a result of this transaction, the Company’s ownership interest in PF Medical diluted from approximately to The Supplier Agreement provides, among other things, that upon PF Medical’s commercialization of certain generators, Digirad will purchase agreed upon quantities of Tc- for its nuclear imaging operations either directly or in conjunction with its preferred nuclear pharmacy supplier and PF Medical will supply Digirad, or its preferred nuclear pharmacy supplier, with Tc- at a preferred pricing, subject to certain conditions.

 

On the Company and its Medical Segment entered into a letter of intent (“LOI”) with a private investor, subject to certain closing and other conditions, including, but not limited to, the execution of a definitive agreement, for the purchase of of Preferred Shares in PFM Corporation at a price of per share. The termination date of the LOI has since expired but the parties continue to negotiate definitive agreements with the following proposed terms, among other things, to be invested by the investor at the initial closing and to be invested at the closing which is to occur within days after the initial closing. Upon the initial closing, half of the Preferred Shares will be issued to the investor and the remaining half of the Preferred Shares will be issued to the investor at the closing. The Preferred Shares of PFM Corporation to be issued to the investor would be voting securities and, after completion of both closings, the investor will own approximately of PFM Corporation’s issued and outstanding voting securities and Perma-Fix Medical S.A. will own the balance of PFM Corporation’s voting securities. At each closing, subject to certain terms and conditions, the investor would also receive a -month warrant to purchase up to shares of PFM Corporation’s common stock at an exercise price of for each share. In addition, at the initial closing, the Company would receive a month warrant, subject to certain terms and conditions, to purchase up to shares of PFM Corporation’s common stock at an exercise price of per share. Further, the Company would be repaid of the amounts owed to it by the Medical Segment within days after the initial closing and the remaining balance (which stands at approximately at within days after the initial closing.