The agreement is subject to the approval of the Oncologix shareholders and to the agreement of the University of Maryland to certain changes in the master license agreement whereunder the University licenses the technology underlying the Oncosphere product.
The terms of the agreement provide generally for the transfer to IUT Medical (IUTM) of all the Oncosphere-related assets of Oncologix and the assumption by Institut fur Umwelttechnologien (IUT) of all of the liabilities of Oncologix that are related to its Oncosphere development effort.
In exchange, Oncologix is to receive a cash payment at the closing of $50,000, a 20% equity interest in IUTM and royalty payments based on the future revenue of IUTM.
Judy Lindstrom, CEO of Oncologix, said: “We are of course delighted at having entered into this agreement with our friends at IUT and look forward to a profitable continuing relationship. We are optimistic of obtaining the necessary approvals of our shareholders and the University of Maryland.”