Biomagnetics Signs a Letter of Intent to Spin Off China Low Carbon Fuel Assets Creating Significant Value for BMGP Shareholders
18 Julio 2011 - 8:00AM
Business Wire
Biomagnetics Diagnostics Corp., (PINK SHEETS:BMGP - News) a
developer of revolutionary diagnostic systems and technology for
HIV, hepatitis, tuberculosis and malaria detection, and other
innovative technologies, today announced it has signed a letter of
intent to acquire a publicly traded company for the purpose of
spinning off its Low Carbon and technology operation, Hubei
Tianyuan Chemical Co., Ltd. (“Hubei”), into the acquired company.
The company targeted for acquisition is current on all Securities
and Exchange Commission filings and is classified as an operating
company and not a shell company.
As part of the transaction, Biomagnetics will receive common
shares in the new company, while Biomagnetics is also expected to
receive a significant amount of funding at the closing of the
transaction. The funds will be used to complete the development
stage of the Company’s Integrated Optical Biosensor (IOBS)
diagnostic system. Biomagnetics has recently completed a
collaboration with Los Alamos National Laboratory to develop the
world’s first integrated optical biosensor in a portable, handheld
technology format designed to substantially lower unit costs and
raise the detection levels of some of the world’s most prevalent
diseases. Funding from the spinoff transaction is expected to be
sufficient to bring the IOBS into the commercialization stage.
Clayton Hardman, CEO of Biomagnetics Diagnostics Corp. stated,
“We are very pleased with the operation we have agreed to acquire
to facilitate the Hubei spinoff. The targeted company will come to
us with a pristine balance sheet and a very attractive capital
structure. While the final details are still being worked out, we
expect the corporate Biomagnetics entity will retain an approximate
5% ownership stake in the Hubei operation. Considering the
significant amount of revenues the Hubei operation is expected to
produce, we believe this ownership stake holds a value that
significantly exceeds the current total market capitalization of
Biomagnetics Diagnostics. Because of this, we believe this
transaction is strongly in the interest of our shareholders.”
Mr. Hardman continued, “Current BMGP shareholders will not only
benefit from this ownership position in Hubei, but also from the
significant amount of cash we expect to receive upon the
transaction closing that will be used to bring the integrated
optical biosensor to commercialization.”
About Biomagnetics Diagnostics Corp.
Biomagnetics Diagnostics Corporation is an advanced medical
device and biotechnology company. The Company has developed a
waveguide-based advanced integrated optical biosensor through its
cooperative research and development agreement with Los Alamos
National Security, LLC, which will initially be used for cholera
and tuberculosis diagnosis. More information on Biomagnetics
Diagnostics Corp. can be seen at www.biomagneticsbmgp.com.
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