Commonwealth Biotechnologies, Inc. Announces Signing of Share Purchase Agreement to Sell Mimotopes Pty Ltd to Leadtec Systems Australia Pty Ltd.
RICHMOND, Va.--(BUSINESS WIRE)--Oct 28, 2010 - Commonwealth Biotechnologies, Inc. (“CBI”) (CBTE.PK) is pleased to announce that it has signed a Share Purchase Agreement to sell its Australian subsidiary, Mimotopes Pty Ltd to Leadtec Systems Australia Pty Ltd. (“Leadtec”) for a cash consideration of $950,000 and an earn out potential of $100,000 if Mimotopes reaches certain milestone earnings in 2011. The transaction will require shareholder approval and is expected to close in late 2010 or early 2011.
The purchaser of the business operates a complementary business in the life sciences services sector, Life Research Pty Ltd. (“Life Research”). Life Research offers custom antibody services and catalogue antibodies, proteins and kits to the research community and pharmaceutical industries.
Dr. Richard J. Freer, CEO of CBI said, “The sale of this business unit is the first step in the company's publicly announced strategy to divest all assets and generate a clean, debt-free shell for which we will seek a growth oriented reverse merger partner.” Freer added, “We are also pleased that this sale places Mimotopes in a circumstance whereby it can grow and prosper.”
Mr. Scott Needham, Managing Director of Leadtec and CEO of Life Research said, “Australia is renowned for its vibrant life sciences research and education industry and we are excited about the opportunity to leverage Mimotopes' 20 years of expertise and international reputation in this sector.
“Since its inception in 2009, Life Research has achieved strong growth and gained substantial support from the Australian research community. Mimotopes' high quality research products and services provide an excellent offering for the global market, and we look forward to supporting the renewed growth of the business.”
CBI offers cutting-edge peptide research and development products and services to the global life sciences industry. CBI now operates through its Australian subsidiary, Mimotopes Pty Ltd.
Leadtec is the Australian leader in the delivery of services and software that help businesses realize their full potential in the management of their supply chain. Leadtec is a privately held Australian business that employs more than 50 people in our Melbourne and Sydney offices and provides services to over 1000 companies throughout Australia and Asia.
About Life Research
Life Research is a leading supplier of quality antibodies, proteins and kits to Australian researchers. Through strategic sourcing and manufacture of their own products, Life Research provides Australian researchers with world class products, pricing and customer service.
Forward Looking Statements
No statement made in this press release should be interpreted as an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended and applicable state securities laws. Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in CBI's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. Specifically, CBI cannot guaranty that:
- the Leadtec transaction referenced herein will close; or
- CBI's shareholders and lenders will approve the Leadtec transaction.
Readers are cautioned not to place undo reliance on these forward-looking statements, which speak only as the date hereof. Further, all forward-looking statements included in this press release are based upon information available to CBI as of the date hereof. CBI assumes no obligation to update any such forward-looking statements.
Contact: Commonwealth Biotechnologies, Inc.
Richard J. Freer, Ph.D., CEO, 804 464 1601
Posted: October 2010