Escalon(R) Medical Corp. Completes Bolt-On Acquisition, Enhances Market Position in France and Expands Product Offering
ACQUIRES HEMATOLOGY BUSINESS ASSETS FROM BIOCODE HYCEL
The purchase price for the acquisition was
- the first interest-only payment is due in December of 2009;
- thereafter, every six months, an interest payment is due at an annual interest rate of 7%;
- after 18 months a principal payment of
Euro 800,000is due;
- after 30 months a principal payment of
Euro 1,000,000is due;
- after 36 months a principal payment of
Euro 1,000,000is due; and
- after 48 months a principal payment of
Euro 1,375,000is due.
The payment amount in
Strong Strategic Fit for Drew
Founded in 1987, the Company (http://www.escalonmed.com) develops markets and distributes ophthalmic diagnostic, surgical and pharmaceutical products as well as vascular access devices. Drew Scientific, which operates as a separate business unit, provides instrumentation and consumables for the diagnosis and monitoring of medical disorders in the areas of diabetes, cardiovascular diseases and hematology, as well as veterinary hematology and blood chemistry. The Company seeks to utilize strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the Company's distribution capabilities, although such partnerships or acquisitions may not occur. The Company has headquarters in
Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. These statements are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to:
- implement its growth and marketing strategies, improve upon the operations of the Company business units, including the ability to make acquisitions and the integration of any acquisitions it may undertake, if any, of which there can be no assurance,
- implement cost reductions,
- generate cash,
- identify, finance and enter into business relationships and acquisitions, and make timely payments for any financing, and
- new product development, commercialization, manufacturing and market acceptance of new products.
Other factors include uncertainties and risks related to:
- marketing acceptance of existing products in new markets,
- research and development activities, including failure to demonstrate clinical efficacy,
- delays by regulatory authorities, scientific and technical advances by the Company or third parties,
- introduction of competitive products,
- ability to reduce staffing and other costs and retain benefit of prior reductions
- third party reimbursement and physician training, and
- general economic conditions.
Further information about these and other relevant risks and uncertainties may be found in the Company's reports on Form 10-K for year ended
SOURCE Escalon Medical Corp.