SAN DIEGO--(BUSINESS WIRE)--Dec. 19, 2003--The Trustee of the ATS Liquidating Trust (PinkSheets: ATISZ -- please read the disclaimer in the last paragraph of this release regarding trading under this symbol) today announced he has entered into an agreement to sell the Trust’s Segenix(TM) intellectual property rights to RegeneMed, Inc. subject to bankruptcy court approval as part of the ATS Chapter 11 Liquidating Plan of Reorganization (the Plan). The Trustee also filed a motion today with the bankruptcy court seeking an order approving the sale to RegeneMed, Inc., or a qualified overbidder.
Under the agreement, RegeneMed will pay the ATS Liquidating Trust $100,000 at closing in addition to future milestone and royalty payments conditional on future product development.
RegeneMed, or a successful overbidder, would acquire certain intellectual property related to engineered tissue for drug screening, drug development, and therapeutic applications in endocrine, including liver and pancreas. The intellectual property includes a sublicense of Patent 4,963,489 (the “489 Patent”). The buyer is aware that the United States Patent and Trademark Office (PTO) has granted a request for ex parte reexamination of the 489 Patent and that the PTO has received a request (which it has neither granted nor denied) for reexamination of another patent that would also be sublicensed under the agreement.
$25,000 of the purchase price would be held by the Trust pending resolution of any issues involving the two patents. Should either of the patents be found invalid, the $25,000 would be returned to the buyer.
Further details of the transaction and information regarding the overbid process may be obtained from the motion filed with the bankruptcy court seeking approval of the above transaction.
As a result of the Plan which was confirmed by the Bankruptcy Court by a final order dated March 21, 2003 and which became effective on March 31, 2003, the stock of ATS was cancelled and its former stockholders now hold non-trading interests in the ATS Liquidating Trust. According to the terms of the Plan, the Interests in the ATS Liquidating Trust are not to trade and the Liquidating Trustee will only recognize as beneficiaries of the Trust those equity holders of record as of the effective date of the Plan. Any trading that may be occurring after the effective date of the Plan under the symbol “atisz.pk” or otherwise is unauthorized by the Plan and will not be recognized by the Trustee. As a result of the terms of the Plan and the order of the bankruptcy court confirming the Plan, the Securities and Exchange Act of 1934 as amended and the rules promulgated thereunder no longer apply to the Company since it has no issued stock, no shareholders, and is no longer in business. However, to the extent applicable, the above cautionary statement is made by the Trust under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Contacts
Abe Wischnia & Associates Abe Wischnia, 619-795-2345
