Bio-Matrix Scientific Group Inc. Announces Preferred Stock Dividend and Spinoff of Wholly-Owned Subsidiary, Entest Biomedical, Inc.
Published: Apr 21, 2009
SAN DIEGO, April 21 /PRNewswire-FirstCall/ -- Bio-Matrix Scientific Group, Inc. , a San Diego-based biotechnology research and development company, announced today that its Board of Directors has declared a stock dividend to common and preferred shareholders of record as of May 5th, 2009 to be paid to shareholders on or about May 15th, 2009.
Eligible registered Common shareholders will be entitled to receive one share of Series B Preferred Stock for every 50 shares of Bio-Matrix Scientific Group, Inc. Common Stock owned as of the Record Date. Eligible registered Preferred shareholders will be entitled to receive one share of Series B Preferred Stock for every 50 shares of Bio-Matrix Scientific Group, Inc. Preferred Stock owned as of the Record Date.
Each holder of Series B Preferred Stock shall be entitled to two votes per share on all matters submitted to the stockholders.
The Preferred Share dividends will only be issued in the name of the beneficial owner of the Bio-Matrix Scientific Group Common and Preferred Stock and no dividend shares will be issued in the name of a broker dealer to disseminate to its clients.
Eligible Common shareholders whose Common shares of Bio-Matrix Scientific Group, Inc. are held in a brokerage account ("Street Name") must contact the brokerage firm holding their account to ensure that the dividend is processed correctly. Currently, no Preferred Shares are held in Street Name.
Broker Dealers holding Common shares in Street Name on behalf of clients shall be required to produce lists of Common shareholders designated by such Broker-Dealers as beneficial owners of the Company's Common stock as of the Record Date. Any lists provided by Broker Dealers must reconcile with records on file with the Depository Trust and Clearance Corporation (DTC) before the dividend may be paid by the Company.
Bio-Matrix also announced today the execution of a Separation and Distribution Agreement with the Company's wholly-owned subsidiary, Entest Biomedical, Inc. ("Entest") whereby the Company has agreed to spinoff the pro rata to the holders of its common and preferred stock 100% of the share capital of Entest.
"This division between Bio-Matrix and Entest will allow each company to focus on its business model," stated David Koos, Bio-Matrix's Chairman and CEO. "Bio-Matrix will be involved with the cryopreservation of adult stem cells and related specimens and pursue joint ventures with a variety of strategic partners at our 15,000 sq. ft. research laboratory facility in San Diego. Entest will strictly focus on research and development in the areas of diabetes regenerative medicine and medical devices. On October 23rd, 2008, Entest was granted an exclusive license by the University of California at Los Angeles to develop and market new gestational diabetes screening products based on UCLA's proprietary intellectual property. In addition, Bio-Matrix has granted to Entest all intellectual property related to the Company's 192 disposable medical instruments."
About Bio-Matrix Scientific Group Inc.:
Bio-Matrix Scientific Group Inc. is a biotech research and development company headquartered in San Diego, California with a 15,000 square foot facility that houses two secure cryogenic stem cell banks, three research laboratories, aseptic cellular/tissue class 10,000/100 processing lab, hematology, microbiology and flow cytometry laboratories.
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.
CONTACT: Dr. David R. Koos, Chairman & CEO of BMSN, +1-619-702-1404, fax,
Web site: http://www.BMSN.us/