NEW YORK, March 23, 2012 /PRNewswire/ -- Islet Sciences, Inc. (OTC.BB: ISLT), a biotechnology company engaged in the research, development and commercialization of patented technologies in the field of transplantation therapy for patients with diabetes, today announced the closing of the acquisition of DiaKine Therapeutics, Inc. ("DTI"), a biopharmaceutical company developing new, proprietary drugs for unmet medical needs in diabetes and complications related to diabetes which is now the Company's wholly owned subsidiary.
John Steel, Chairman and CEO of Islet Sciences stated, "We are pleased to announce the closing of this acquisition and look forward to executing on the combined company's synergistic market opportunity in the diabetes space. Our approach to the treatment of diabetes in addition to other inflammatory diseases and autoimmune disorders represents a very large market. DiaKine's drugs may benefit people with type 1 and type 2 diabetes that has a total addressable market of approximately $13 billion. We believe the DiaKine acquisition positions the Company to capitalize on the growing opportunities in this field."
As previously reported in the Current Report on Form 8-K filed by Islet Sciences, Inc. with the SEC on February 29, 2012, on February 23, 2012, the Company entered into a Share Exchange Agreement with DTI, and shareholders of DTI, whereby the Company agreed to issue to the DTI shareholders an aggregate of 200,000 shares of its newly designated shares of Series C preferred stock, in exchange for all issued and outstanding shares of DTI. Each share of preferred stock is convertible into ten shares of the Company's common stock. The Company also agreed to issue to DTI 100,000 shares of its common stock in satisfaction of DTI's liabilities outstanding at the closing under the agreement.
The full details of the DTI acquisition are set forth in the Company's Current report on form 8-K available at: 8-K filing at http://yahoo.brand.edgar-online.com/default.aspx?cik=1425919.
About Islet Sciences, Inc.
Islet Sciences is a development-stage biotechnology company with patented technologies focused on transplantation therapy for people with insulin-dependent diabetes. The Company's transplantation technology includes methods for the culturing, isolation, maturation, and immunoprotection (microencapsulation) of islet cells. The Company's mission includes the introduction of commercial products with applications to cell-based replacement therapy in the healthcare marketplace.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements for Islet Sciences reflect current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward looking statements include statements herein with respect to the companies' successful execution of their perspective business strategies, including with respect to the successful development of cell therapeutics, including with respect to Islet Sciences -- as well as the future of the cell therapeutics industry. Actual results could differ materially from those anticipated in these forward- looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements on September 30, 2011 and for Islet include the risks described in the Company's Form 8-K filed with the Securities and Exchange Commission on December 30, 2011. The companies' further development is highly dependent on future medical and research developments and market acceptance, which is outside their control.
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SOURCE Islet Sciences, Inc.