NEW YORK, May 11 /PRNewswire-FirstCall/ -- Medeorex, Inc. (OTC Bulletin Board: MRXIE) announced today that it has signed a term sheet to acquire privately held CardioGenics Inc. The transaction is targeted to close by June 24, 2005.
The acquisition will be completed through a merger between CardioGenics and a to-be-formed wholly owned Ontario subsidiary of Medeorex, pursuant to which Medeorex will issue shares of its common stock to the shareholders of CardioGenics. Following the merger, the current shareholders of CardioGenics will hold 75% of the outstanding shares of Medeorex and current Medeorex shareholders will retain 25% of the outstanding shares of Medeorex. After completion of the transaction, CardioGenics will operate as a wholly owned subsidiary of Medeorex. Completion of the transaction is subject to certain conditions, including receipt of a fairness opinion as to the valuation of CardioGenics, satisfactory completion of due diligence, agreement on definitive documentation, and board of directors and shareholders approval of both companies.
Additional information regarding this proposed transaction is contained in Medeorex’s Current Report on Form 8-K filed today with the Securities and Exchange Commission.
CardioGenics, founded in Toronto in 1997, is a biotechnology company dedicated to the development of superior products for the In-Vitro-Diagnostics testing market and has developed several proprietary technologies. CardioGenics is presently in the process of completing the initial commercialization and launch of the company’s patented core technology.
Medeorex, Inc., based here in New York City, is focused on the health services industry.
For more information, please contact: Jay M. Green Executive VP Medeorex, Inc. 212-838-2585
Medeorex, Inc.
CONTACT: Jay M. Green, Executive VP of Medeorex, Inc., +1-212-838-2585
Web site: http://www.medeorex.com/
