- ProMetic to acquire common stock held by American Red Cross, in a
cashless transaction, taking ProMetic's stake in PRDT to 77% - American Red Cross to remain involved on the Board of Directors of PRDT
MONTREAL and CAMBRIDGE, England, April 9 /PRNewswire-FirstCall/ - ProMetic Life Sciences Inc. (TSX:PLI) ("ProMetic") announces that ProMetic has signed a Letter of Intent ("LOI") to acquire the American Red Cross' ("ARC") common stock holding in Pathogen Removal and Diagnostic Technologies Inc. ("PRDT"), the joint venture established by ProMetic and ARC in 2002 to develop and commercialize products to diagnose and reduce pathogens in blood, blood derivatives, biopharmaceuticals and other biological products.
The transaction contemplated by the LOI is a natural progression following commercialization of the P-Capt(R) filter and the prion reduction resin that was fully licenced to ProMetic.
The terms of the LOI provide for an ongoing royalty stream to ARC based on income derived from PRDT technology. In exchange, ProMetic will raise its ownership position in PRDT to 77% by acquiring ARC's 51% stake in PRDT. The remaining 23% will continue to be held by the academic co-founders. ARC will continue to hold its preferred stock and maintain representation on the Board of Directors.
"With the commercialization of the PRDT technology well underway and the projected strong market demand for this technology, ProMetic's increased stake in PRDT to 77% will allow for the revenues derived from the technology to be fully consolidated into ProMetic's financial results," stated Mr. Bruce Pritchard, ProMetic's Vice President of Corporate Development. Mr. Pritchard added: "The structure of this deal is beneficial to both parties, allowing ARC to share in the ongoing success of the jointly developed technology, whilst not requiring a cash payment by ProMetic".
"ARC has played a pivotal role within PRDT in advancing the technology
|SOURCE PROMETIC LIFE SCIENCES INC.|
Copyright©2008 PR Newswire.
All rights reserved