(Richmond, Virginia) - Commonwealth Biotechnologies Inc. (NASDAQ Capital Market:CBTE) says it has signed a deal to acquire GL Biochem Ltd., a privately owned Shanghai-based chemical company and the largest supplier of research-grade peptide products and peptide reagents globally.
The transaction will involve issuing 6.56 million fully paid ordinary CBI shares to the shareholders of GL Biochem, representing 51% of CBI's outstanding share capital. As part of the transaction, GL Biochem will grant CBI an option to purchase all the issued capital of three related businesses, namely GL Biochem (Danyang) Ltd, GL Peptide (Shanghai) Ltd and GL Peptide (Binhai) Ltd within twelve months of the closing of the transaction.
The purchase price of the option will range between 8.14 million shares and 18.64 million CBI shares, based on the coming 2008 audited after-tax profit results of GL Biochem and its associated companies. This deal is subject to the completion of audits of GL Biochem and the approval of Commonwealth Biotechnologies shareholders and lenders.
Over the past 5 years, GL Biochem and related businesses have seen annual revenue growth of more than 40%. Based on an independent report, they reported 2008 revenues of over $13 million and net income after tax of about $2 million.
“Peptides make up only a small proportion of the pharmaceutical products on the market today but represent one of the fastest growing classes of new drugs because of their high activity and specificity, low toxicity and high degree of potential chemical diversity,” Dr. Paul D'Sylva, Director of CBI and Chairman of Mimotopes.
CBI offers research and development products and services to the global life sciences industry. CBI now operates through: CBI Services, a discovery phase contract research organization; Fairfax Identity Laboratories, a DNA reference business; Mimotopes Pty Ltd, Melbourne, Australia, a peptide and discovery chemistry business; and Venturepharm (Asia), a contract research consortium specializing in drug discovery and development, process scale-up, formulation development, cGMP manufacturing and clinical trial management.
For more information about the company visit http://www.cbi-biotech.com/commonwealthbio/
For a complete version of the BUSINESS WIRE press release: http://www.businesswire.com/news/home/20090608005951/en
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