The form of the deal includes a combination of $13.25 million cash, as well as debt assumption, minority ownership in the business going forward and deferred sale proceeds. The transaction was first announced on October 5, 2005 and is expected to close later this month.
Proceeds from the sale will go towards the company’s drug development programs including a cancer treatment planned to enter a pivotal phase III trial in superficial bladder cancer, and an E coli cattle vaccine that is nearing licensing.
“These two key projects require significant attention and investment at this late stage of their development,” said Graeme McRae, president & CEO of Bioniche Life Sciences.