Arbios sells bioartificial liver system to HepaLife Technologies

The terms of the deal included $450,000 in cash and a five-year warrant to purchase 750,000 shares of HepaLife’s common stock. Arbios has received $250,000 at the closing and will receive an additional $200,000 on the earlier to occur of: i) the date on which HepaLife, in the aggregate, raises $4 million of gross proceeds from debt or equity financings, or ii) the 18-month anniversary of the closing of this transaction.

The Sepet Liver Assist Device is an extracorporeal liver assist device for blood purification of patients suffering from cirrhosis due to chronic liver disease and who are hospitalized with acute complications due to worsening liver dysfunction and portal hypertension. Sepet is designed for use with standard blood dialysis systems available in hospital intensive care units.

Shawn Cain, interim president and CEO of Arbios, said: “The cash proceeds received upon the closing of this transaction will be used to continue our efforts to obtain financing or a strategic partnership for Sepet, our liver assist device, or another transaction that will maximize value for our shareholders.

“We will be continuing our efforts by reaching out to potential additional interested parties; however, there can be no assurances that we will generate any offers, and if offers are obtained, that they will be deemed acceptable by the company and its shareholders.”

The company has also entered into a three-month consulting agreement with Mr Cain, pursuant to which Mr Cain will seek to identify and engage prospective purchasers, licensors and investors and negotiate the terms of any potential transactions.