SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest
event reported):
December 12, 2001
CITA BIOMEDICAL, INC.
(Exact name of registrant as specified in its charter)
COLORADO 93-0962072
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
9025 Wilshire Blvd. Suite 301, Beverly Hills, CA 90211
(Address of principal executive offices) (Zip code)
(310) 550-4965
(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year,
if changed since last report.)
ITEM 5. OTHER EVENTS.
CITA Biomedical, Inc. ("CITA") has reached an agreement to license a neuron
adaptation technology developed for the purpose of "resetting" the brain
function of a habituated alcohol or cocaine user to its pre-habituation state
(the "New Technology"). CITA believes that this license represents a major step
in CITA's efforts to become a leading provider of products and services for the
treatment of a wide variety of chemical addictions.
The license to the New Technology is to be acquired from CITA S.L., a Spanish
business operated by Dr. Juan Jose Legarda, the inventor of CITA's UROD process,
currently used for the treatment of opiate addiction.
The agreement contemplates the payment of monthly royalties to CITA S.L. in
consideration of the exclusive right to utilize the New Technology for treatment
of alcohol and cocaine dependency within the United States, Canada and Mexico to
residents thereof.
CITA believes that the alcohol treatment portion of the New Technology will
dramatically increase the market for CITA's products and services. The rate of
alcohol dependency in the U.S. far exceeds the rates of opiate and cocaine
addictions, and CITA's ability to treat individuals dependent on alcohol
represents a major new source of potential revenues.
Furthermore, CITA believes that the New Technology's neuroadaptation process
represents a significant advance in the treatment of chemical dependence.
Whereas conventional alcohol and cocaine treatment programs focus on behavioral
modifications to the user, CITA will now be able to treat a user's brain to
reconstruct neural function to a pre-habituation state. CITA believes that
neuroadaptation will be highly effective in preventing relapse following
treatment.
In addition, CITA believes that the ability to treat cocaine addiction will be
of particular benefit to CITA in the near term. CITA is currently unable to
provide its UROD treatment to persons addicted to opiates where pre-treatment
testing indicates use of cocaine as well. Following implementation of the New
Technology, CITA will be able to treat individuals simultaneously for both
opiate and cocaine addiction.
CITA will require significant additional outside capital in order to implement
treatment programs incorporating the New Technology. CITA believes that the
acquisition of the New Technology license will enhance its ability to raise such
capital by virtue of the additional market opportunities presented by the New
Technology. Although CITA is in discussions with potential funding sources,
there can be no assurance that CITA will obtain funds in an amount sufficient to
commence treatment procedures utilizing the New Technology. In the event that
CITA is unable to raise such funds, it may be unable to make timely payments of
royalties, and CITA S.L. could act to terminate the license and revoke CITA's
ability to administer procedures using the New Technology.
This release contains projections and other forward-looking statements regarding
future events and the future financial performance of CITA that involve risks
and uncertainties. Readers are cautioned that these forward-looking statements
are only predictions and may differ materially from actual future events or
results. Readers are referred to the documents filed by CITA with the SEC,
specifically the most recent reports on Form 10-KSB and 10-QSB, each as it may
be amended from time to time, which identify important risk factors that could
cause actual results to differ from those contained in the forward-looking
statements. The financial information contained in this release should be read
in conjunction with the consolidated financial statements and notes thereto
included in CITA's most recent reports on Form 10-KSB and Form 10-QSB, each as
it may be amended from time to time. CITA's results of operations for the three
and twelve months ended September 30, 2001 are not necessarily indicative of
CITA's operating results for future periods.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
None required.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CITA BIOMEDICAL, INC.
Dated: December 12, 2001 By: /s/ Joseph Dunn
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President