VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- January 19, 2007 -- IRI Separation Technologies Inc. (TSX VENTURE: IRI) announced today that it has entered into a letter of intent to acquire all rights to license, manufacture and distribute all products produced and other product rights that are owned by Lakota Research International Inc. and/or Lakota Antibodies Inc. and certain related parties (collectively “Lakota”) and marketed under the Lakota and other brand names (the “Assets”). The Assets consist of the world-wide Lakota branded rights and formulas with the exception of Canada, but will include antibody products for the Canadian market that Lakota’s founder and developer acquired in an earlier transaction.
“This could be a pivotal moment for IRI,” stated John Mason, President and CEO of IRI. “The resulting synergies created by this acquisition would allow us to integrate our growing product line with Lakota’s distribution network, marketing expertise and brand power on an international scale.”
“I am extremely excited about the potential acquisition of the Lakota Assets by IRI,” stated Rick Stewart, founder and CEO of Lakota. “I believe that combining these Assets with the existing operations of IRI represents a tremendous opportunity for all current and future shareholders of IRI.”
The letter of intent provides that the purchase price for the Assets shall consist of CDN$2,000,000 cash and 3,000,000 common shares of IRI Separation payable at closing. In addition, Lakota shall retain the right to receive certain royalties, for a term of five years following closing, based upon EDITDA and other financial criteria. Lakota shall also have the right to receive up to 10,000,000 additional common shares of IRI Separation which may be issued based upon meeting performance milestones.
Rick Stewart is a director of IRI Separation and a principal of Lakota and therefore the parties are not dealing at arm’s length. Mr. Stewart will be appointed President of IRI at closing of the transaction. IRI Separation has retained Pacific International Securities Inc. as an advisor with respect to the transaction.
Lakota has negotiated confidential licensing/distribution Agreements with third parties for the U.S. and EU. The U.S. licensee has just begun distributing Lakota nationally to the U.S.'s largest pharmacy chain and has purchase orders pending for several other U.S. Pharmacy, Mass and Grocery retailers.
Lakota’s European Licensee is expecting distribution and sales to get underway this year after several years of regulatory hurdles.
Lakota also has pending licensing/distribution agreements for other countries, namely Hong Kong, China and other Asian countries.
There is a potential for the company to license and distribute both the Lakota joint care products and its own antibody products under these existing licensing/distribution Agreements.
Completion of the transaction is subject to certain conditions, including due diligence, execution of a definitive agreement, completion of a financing and the acceptance of the TSX Venture Exchange.
About IRI Separation Technologies Inc.
IRI Separation Technologies Inc. (TSX VENTURE: IRI) is a biotechnology company that specializes in the extraction, development and commercialization of monoclonal and polyclonal immunoglobulin antibodies for virus and bacteria related health issues. Intended for use as a nutraceutical for human consumption, the antibodies are derived from bovine whey and chicken eggs. The immunoglobulin antibodies are intended for both the general and specific antibody market.
On behalf of the Board of Directors, John Mason, President and CEO.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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Contacts: Ascenta Capital Partners Inc. Investor Relations (604) 628-5800 or Toll Free: 1-866-684-4209 Email: info@ascentacapital.com
IRI Separation Technologies Inc. John Mason Vancouver Office (604) 807-8694 (604) 926-1485 (FAX) Email: jmason99@shaw.ca
SOURCE: IRI Separation Technologies Inc.
