TeraRecon Inc. this week announced that PENTAX Corp. of Tokyo, Japan, has made a capital investment in the company and entered into a strategic alliance agreement relating to medical endoscopic imaging and consumer electronics digital camera applications. The agreement and investment occurred in late May.
TeraRecon says that PENTAX acquired 341,000 shares of newly issued series G preferred stock, representing 2.18 percent of issued equity in TeraRecon, for $5,626,500. Under the terms of the agreement, TeraRecon has awarded PENTAX the right to include TeraRecon's signal and image processing processor and software technologies in products targeted for any market with certain specific exceptions mutually agreed upon between the companies.
In addition, TeraRecon says it will conduct a feasibility study related to the application of its technology to new product development specifically in the areas of, but not limited to, optical endoscopic imaging and consumer electronics digital camera applications. TeraRecon says that this may potentially lead to a first new product delivery within 2 years from the beginning of the feasibility study.