RICHMOND, Va.--(BUSINESS WIRE)--Commonwealth Biotechnologies, Inc. is pleased to announce that it has completed the divestment of the assets (excluding land and buildings) of its bioanalytical and genetic testing business units, CBI Services and Fairfax Identity Laboratory (FIL) for a cash consideration and an ongoing lease commitment for 5 years.
The purchaser of the business assets and lessee, Bostwick Laboratories Inc, is a national pathology laboratory, headquartered in Richmond, VA.
Dr. Richard J. Freer, COO of CBI said, “The sale of these business units satisfies a key condition precedent in CBI’s acquisition of GL Biochem, announced on June 8, 2009. The divestment of the assets of CBI Services and FIL is in line with CBI’s strategy to create the global leader in pre-clinical peptide synthesis and development.”
Dr. Paul D’Sylva, Director said that, “CBI’s balance sheet and profit/loss statement will be significantly strengthened through this transaction because it eliminates ongoing earnings losses, provides significant ongoing fees through a leaseback from a national pathology laboratory, provides up-front cash, and allows CBI to retain its high value land and building assets. The company is now ideally positioned to close its transformational deal with GL Biochem and accelerate its growth as the world leading peptide contract research organization.”
CBI offers cutting-edge peptide research and development products and services to the global life sciences industry. CBI now operates through its Australian subsidiary, Mimotopes, Pty Ltd and Venturepharm (Asia), a contract research consortium specializing in drug discovery and development, process scale-up, formulation development, cGMP manufacturing and clinical trial management.
About GL Biochem (Shanghai) Ltd
GL Biochem (Shanghai) Ltd is an international leader in the research, development, manufacture and marketing of diverse biochemical and fine chemicals, with a particular strength in peptides, peptide reagents and related products. With over 800 highly-trained staff and state-of-the-art facilities, GL Biochem is now the largest manufacturer of research-grade peptides and peptide reagents globally. For more information visit www.glschina.com.
No statement made in this press release should be interpreted as an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended and applicable state securities laws. Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in CBI’s filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. Specifically, CBI cannot guaranty that:
* the GL transaction referenced herein will close;
* CBI and GL, as combined entities, will perform as anticipated on an ongoing basis;
* that CBI’s shareholders and lenders will approve the GL transaction.
Readers are cautioned not to place undo reliance on these forward-looking statements, which speak only as the date hereof. Further, all forward-looking statements included in this press release are based upon information available to CBI as of the date hereof. CBI assumes no obligation to update any such forward-looking statements.
Commonwealth Biotechnologies, Inc.
Richard J. Freer, Ph.D., COO, 804-337-0784