Symbollon signs sale and licensing agreement with BioCide Pharma

Under the agreement, Symbollon will transfer ownership of its patent application covering use of its technology in the upper respiratory tract. As partial consideration under the agreement, Symbollon will receive an equity position in BioCide equal to 50% ownership of the company.

Under the terms of the agreement, BioCide will receive ownership of Symbollon’s patent application covering use of its technology in the upper respiratory tract and obtain an exclusive license to Symbollon’s other iodine-based technology for use in the field. As partial consideration for the transfer, BioCide issued 625,000 shares of its common stock which represents 50% of BioCide’s outstanding equity.

Additionally, BioCide agreed to assume all of Symbollon’s outstanding patent fees and expenses (approximately $18,000) related to the patent application. Under the agreement, BioCide is required to raise $250,000 in equity during 2009 and an aggregate of $1.25 million by the end of 2010. So long as Symbollon retains at least a 10% ownership position in BioCide, it has the right to appoint one member of BioCide’s board of directors.

Paul Desjourdy, president and CEO of Symbollon, said: “We entered into this transaction to preserve our intellectual property in the upper respiratory tract. Symbollon was not able to finance further prosecution of the patent application.

“By transferring this asset to BioCide, we believe that the required funding to develop products in the area can be raised without dilution to Symbollon’s stockholders. This will allow Symbollon to focus its efforts on the commercialization of IoGen, our dietary supplement to promote breast health, and resources allowing, to develop topical antimicrobial products based on our technology.”