Grapefruit USA Inc (GPFT)

[Baruch Lebovits]

DJN: =DJ IN THE MONEY: Imaging3 Waits For FDA Clearance

(Dow Jones 11/23 15:12:59)

By Carol S. Remond


A DOW JONES NEWSWIRES COLUMN

It's been about 880 days since Imaging3 Inc. (IMGG) first asked the U.S.
Food and Drug Administration to clear its Dominion medical scanner for
commercialization.
The FDA aims at clearing most so-called 510(k) applications, in which
companies only have to prove that their device is as safe or as effective as
other comparable devices already on the market, within 150 days.
But while it's been a while, Imaging3 Chief Executive Dean Janes is
predicting there is light at the end of the tunnel. Janes first told
investors on Oct. 29 his company might be cleared to market its mobile
scanner by the end of November.
Janes' optimism led to huge spikes in Imaging3 stock price and trading
volume. The stock, which topped at $1.95 a share on Nov. 13, was recently
trading 8.3% lower at $1.27 a share. Imaging3 shares had been trading at
around 5 cents until early September before online promotions started
inviting investors to take a close look at the company.
There are about 375.7 million shares of Imaging3 outstanding, which gives
this company a handsome $473 million market capitalization.
CEO Janes told Dow Jones Newswires his company has nothing to do with online
promotions and a Twitter campaign that have been touting Imaging3's
potential. The CEO, who admits providing general information to shareholders
on the Investorshub.com board for IMGG, said he believes his company is
"very close to an FDA approval." He predicted that once Imaging3 gets
clearance, it could manufacture and sell as many "as 10 systems a month."
Janes again told investors during a recent Money TV spot, a service for
which the company pays between $7,500 and $11,000 per quarter, that he
expects the FDA to shortly clear Imaging3 to market its Dominion device and
that 2010 "looks to be our breakthrough year."
According to a quarterly report filed with the Securities and Exchange
Commission on Nov. 13, Imaging3 had $154.412 in cash at the end of
September. The company had $1.7 million in total assets, including almost
$1.1 million listed as "Other receivables-related party" that appear to have
been paid to Janes in excess of money owed to him by the company. A note to
Imaging3 financial statements explains that Janes, subsequent to Sept. 30,
transferred back the $1.1 million to the company. It's unclear whether the
refund was part of the almost $1.8 million owed to Janes and paid to him by
Imaging3 in the first nine months of 2009. Janes told Dow Jones he owns
about 60 million shares of Imaging3.
(Carol S. Remond, a special writer on the In The Money team, is an
award-winning columnist who won a Gerald Loeb Award in 2005 for best news
service content with "Exposing Small-Cap Fraud," a series of articles that
described how three small companies unscrupulously pumped up their stocks.
She can be reached at 303-997-5783 or by email at [e-mail])
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(END) Dow Jones Newswires
November 23, 2009 15:12 ET (20:12 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.

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