Biomagnetics Moves Zhuhai Oil Energy Acquisition from LOI to Purchase Agreement Phase - Expects Closing During CEO Trip to China
13 September 2010 - 11:00PM
Business Wire
Biomagnetics Diagnostics Corp., (PINK SHEETS:BMGP) a developer
of revolutionary diagnostic systems and technology for HIV,
hepatitis, tuberculosis and malaria detection, and other innovative
technologies, today announced it has completed its formal purchase
agreement to acquire Zhuhai Oil Energy Science and Technology Ltd.,
an inventor and producer of unique gasoline and diesel biofuel
blends, located in Guangdong Province, China. Biomagnetics intends
to close on the acquisition during the CEO’s trip to China this
week.
The Zhuhai low carbon footprint biofuel formulations
significantly reduce particulate and carbon emissions, but are
still cost competitive. The acquisition of Zhuhai is the second
announced in a series of four planned highly accretive Chinese
technology and product acquisitions designed to significantly boost
Biomagnetics’ common share value.
“We have decided to accelerate the closure of Zhuhai for several
reasons. The first is the recent patent application submitted last
week to protect the formulation for this unique bio-fuel blend.
With the filing completed, we can now move toward a formal purchase
agreement,” commented Clayton Hardman, CEO of Biomagnetics. “The
second reason for accelerating the closure of Zhuhai is the
immediacy of revenue realization. Many industrial operations in the
northern areas are under intense pressure to burn cleaner fuels.
One industrial plant has already signed a contract with our target
company. During my upcoming trip to China my goal is to not only
close this acquisition, but to make final arrangements to begin
deliveries under this contract and to expand it considerably.”
During the upcoming trip to China, CEO Clayton Hardman, plans to
not only visit the Zhuhai bio-fuels operation and close the
acquisition, he also plans to visit the sites for operations of the
other proposed acquisitions, Hubei Tianyuan Chemical, Lanzhou
Sunshine Plastics and Lanzhou Sanhuan New Technology. Additionally,
several meetings are schedule with government officials relative to
these acquisitions.
Relative to the acquisition of Zhuhai, Biomagnetics will issue a
total of 10 million shares of common stock for the purchase.
Biomagnetics believes this highly accretive proposed acquisition,
which is expected to begin producing substantial high margin
revenue, is proposed at a significantly attractive valuation and
will add meaningfully to Biomagnetics common shareholder value.
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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