NEW YORK, Feb. 29, 2012 /PRNewswire/ -- Islet Sciences, Inc. (OTC.BB: ONCED), 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 that the company entered into a Share Exchange Agreement to acquire DiaKine Therapeutics, Inc. ("DTI"), a biopharmaceutical company developing new, proprietary drugs for unmet medical needs in diabetes and complications related to diabetes.
John Steel, Chairman and CEO of Islet Sciences stated, "This acquisition represents an important achievement for our Company as we continue to execute our growth strategy in the diabetes space. DiaKine's drugs have the potential to reshape the diabetes market by stopping the progression of diabetes and reversing damage already caused by the disease. Because of their unique immune modulating and anti-inflammatory properties, these therapies may potentially benefit people with type 1 and type 2 diabetes which we believe has a total addressable market of approximately $13 billion. We believe this acquisition will position us to capitalize on the exciting opportunities emerging in our industry."
DTI's most clinically advanced drug, Lisofylline ("LSF"), has had an excellent safety profile in clinical trials to date. LSF works at the cellular level by improving the function of insulin producing islet cells and protecting them from damage and premature death caused when the body's immune system turns on itself. This autoimmune action is the cause of type 1 diabetes and Latent Autoimmune Diabetes in Adults (LADA), which combined affect approximately three million people in the U.S. About three million people with type 2 diabetes use insulin due to diminished insulin production and an increasing resistance to insulin.
A primary focus of DiaKine's research and development is on its next generation of orally bioavailable immune modulators which have an improved spectrum of action to LSF. Several lead compounds have been identified for further development and are examples of the extensive library of analogs and new structures in its patent portfolio that await discovery for future indications.
DiaKine Chairman, Dr. Jerry L. Nadler, will be joining the Board of Directors of Islet Sciences upon completion of the acquisition. Dr. Nadler, a noted expert in the pathogenesis of diabetes and related complications, said, "I am very enthused about the synergistic opportunities created by this merger with Islet Sciences. This strengthens our collective ability to address the treatment of diabetes as well as other inflammatory diseases and autoimmune disorders."
Dr. Lakey, Co-developer of the Edmonton Protocol, and Islet Sciences' Chairman of the Strategic Advisory Board stated, "We welcome Dr. Nadler and the DiaKine team to the Islet Sciences family and look forward to working together on this enormous opportunity. The two companies and their unique attributes clearly made strong strategic sense to move forward as one combined entity as we deliver on our strategy. Dr. Nadler's expertise and accomplishments in particular will be extremely beneficial to the company as we continue making solid progress."
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. The Company also agreed to issue to certain creditors of DTI 100,000 shares of its common stock in satisfaction of DTI's liabilities outstanding as of the closing under the agreement. Each share of Series C preferred stock is convertible into 10 shares of common stock.
If the closing price of the common stock for ten consecutive trading days immediately preceding the conversion is greater than or equal to $1.50 (as adjusted for any stock dividends, combinations, splits, and recapitalizations) on the primary trading market on which the common stock is then listed or quoted, then the outstanding shares of Series C preferred stock will automatically convert into shares of common stock.
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.
About DiaKine Therapeutics, Inc.
DiaKine Therapeutics, Inc. is a development stage company commercializing novel immune modulators for the treatment of diabetes and related complications. These drugs have the potential to stop the progression of diabetes and reverse damage already caused by the disease. Therapeutics under development by DiaKine include: adjunct therapy to islet cell transplants (in Phase 2 clinical trial), halting the progression of type 1 diabetes in newly diagnosed adults, treatment and prevention of Latent Autoimmune Diabetes of Adults (LADA), treatment and prevention of insulin requiring type 2 diabetic, treatment and prevention of diabetes complications. DiaKine would like to thank the National Institute of Diabetes & Digestive & Kidney Diseases/National Institutes of Health (NIDDK/NIH) for producing the clinical trials supplies for the trial.
This press release contains forward-looking statements. 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 One E-Commerce Corporation 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.