Biomagnetics Announces LOI to Acquire Hubei Tianyuan Chemical Company–Third Chinese Asset Targeted at $1.50 BMGP Share Price
27 August 2010 - 11:56PM
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 the signing of a Letter of
Intent (LOI) with Hubei Tianyuan Chemical Co., Ltd. of Yangxin
Nacheng Chemical Industry Zone, located in Hubei Province, China.
This expected acquisition is the third of several planned
acquisitions targeted at a share price in excess of US $1.50 for
Biomagnetics Diagnostics’ common shares. Biomagnetics plans to
rapidly transition the trading of its shares to the OTCBB.
Under the terms of the LOI, Biomagnetics will acquire all assets
of Hubei Tianyuan Chemical, a manufacturer of the organic compound
dimethyl ether (DME). DME is widely used in China as a substitute
for propane used as fuel in household and industry
applications.
Biomagnetics expects this proposed acquisition to be one of
several Chinese technology and product acquisitions targeting a
Biomagnetics Diagnostics common share price in excess of $1.50.
These acquisitions are expected to result in relatively minor
amounts of shareholder dilution that will result in a fully audited
and fully reporting company with approximately $60 million of
assets and tens of millions of dollars of revenues annually. The
Company expects to announce two additional acquisitions over the
coming weeks and months. Relative to the acquisition of Hubei
Tianyuan Chemical, Biomagnetics will issue a total of 24 million
shares of common stock for the purchase at a share value targeting
US $1.50 per share. Biomagnetics believes this acquisition is being
acquired at a highly attractive valuation for current common
shareholders.
“The use of DME as a fuel substitute is growing at a rapid pace
within China. The Hubei Tianyuan Chemical plant is currently
producing this product and is achieving significant revenue streams
and growth, which will be fully integrated into our income
statement,” commented Clayton Hardman, CEO of Biomagnetics
Diagnostics. “The firm has recently undergone a thorough audit,
which we are currently reviewing. Our Chinese partners at Hubei
Tianyuan Chemical are valuing common shares of Biomagnetics
Diagnostics at US $1.50. Simply put, we believe this acquisition
adds tremendous value for the current BMGP shareholder. We continue
to believe our common shares are significantly undervalued relative
to our strong opportunities in the medical diagnostics arena and
very large revenue and profit opportunities relative to these
expected Chinese acquisitions.”
About Biomagnetics Diagnostics Corp.
Biomagnetics Diagnostics Corporation is an advanced medical
device and biotechnology company and an acquirer other innovative
technologies. The Company is currently developing 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,
tuberculosis and malaria diagnosis. More information on
Biomagnetics Diagnostics Corp. can be seen at
www.BiomagneticsBMGP.com.
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