SAN DIEGO, CA--(Marketwire - November 08, 2011) - Entest BioMedical Inc. (OTCQB: ENTB) (PINKSHEETS: ENTB) today announced the execution of a definitive agreement with Titterington Veterinary Services Inc, a Eugene, Oregon-based corporation which operates a veterinary practice under the trade name Emerald Valley Pet Medical Center.
Pursuant to the agreement, ENTB is entitled to receive 97% of the revenue to be generated by Emerald Valley Pet Medical Center for a period of no less than seven years, ownership of intellectual property including the Emerald trade name and customer lists as well as the obligation of Titterington Veterinary Services to assist and participate in the Company's biotechnology research and development activities over the term of the agreement.
As consideration for the abovementioned, the Company is obligated to issue $700,000 of its shares to Dr. Ronald Titterington, DVM, pay certain expenses on behalf of Titterington Veterinary Services over the term of the agreement and pay a bonus to Dr. Ronald Titterington equal to half the profit realized by ENTB over the term of the Agreement. The Company has also agreed to lease space in Eugene, Oregon for use by Titterington.
Entest's Chairman & CEO, David R. Koos, stated, "We are very excited to enter into a business relationship with Emerald Valley Pet Center. We find the operators of this animal medical center to be highly experienced veterinarians dedicated to the practice of quality veterinary medicine. With this relationship, Entest may benefit from a dramatically increased near term revenue stream, expansion of its distribution channels for products in the Company's pipeline and the addition of another research center for veterinary biotechnology research."
Koos went on to add: "Despite the current economic malaise, we found that Emerald Valley generated revenue of over $800,000 in 2010."
The Company's current business model involves acquiring veterinary hospitals to be utilized as potential distribution channels for its immuno-therapeutic cancer vaccine for canines (dogs) which is currently in development. The Company believes that, in addition to serving as distribution channels for the Company's immuno-therapeutic cancer vaccine for canines, these clinics will be able to generate revenue for the Company from current operations.
Under current law, the State of Oregon generally prohibits the ownership of veterinary practices by anyone other than a licensed veterinarian. The Company believes that entering into agreements such as the Titterington Agreement with veterinary practices in states which prohibit corporate ownership of veterinary practices will benefit ENTB by:
(a) providing ENTB with revenue streams from those markets and
(b) providing ENTB with distribution channels for its products and services within those markets.
ENTB has filed a form 8-K with the United States Securities and Exchange Commission which contains as an exhibit the agreement described in this news release.
About Entest BioMedical Inc.:
Entest BioMedical Inc. (OTCQB: ENTB) is a developer of veterinary medicines that harness the animal's own reparative / immunological mechanisms. The company's products include an immuno-therapeutic cancer vaccine for canines (ImenVax™). The company's immuno-therapeutic cancer vaccine utilizes an encapsulation device as the vaccine delivery system and requires a simple implant procedure.
This news release may contain forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.