Diagnostear, a subsidiary of BioLight Life Sciences Ltd, signed a binding Letter of Intent for merger, capital raise and listing on the Canadian Securities Exchange

TEL AVIV, Israel , June 12, 2023 /PRNewswire/ -- BioLight a publicly traded company on the Tel Aviv Stock Exchange (TASE: BOLT), specializing in investments in biomed companies focusing on eye diseases, announced that its subsidiary, Diagnostear has entered into a binding LOI for a merger agreement with a Canadian corporation that is expected to list its shares on the Canadian Securities Exchange (CSE). Following the completion of the merger, Diagnostear is set to commence trading in Canada with an estimated value of US$ 33.5 million. BioLight will hold approximately 50% of the shares of the merged traded company, with the initial value of shares held by BioLIght being approximately US$ 16.8 million.

As part of the agreement and a prerequisite for its closing, Diagnostear will raise approximately US$ 1 million, while the Canadian corporation will raise approximately US$ 2.5 million. Once the transaction is completed, and after all expenses related to the transaction and trading registration for the Canadian corporation have been paid, the merged company is expected to have a minimum cash balance of US$ 3 million.

Diagnostear, of which Biolight currently holds 77% ownership, specializes in the development of eye tests based on tear fluid analysis. The funds raised from the aforementioned capital raises are designated to support the business plan of the merged company which includes advancing Diagnostear's dry eye detection product and the development of a new red-eye detection product.

The completion of the transaction is subject to the aforementioned capital raisings and obtaining various customary necessary approvals.

Yaacov Michlin, CEO of BioLight and Chairman of the Board of Directors of Diagnostear stated: "The merger and capital raise are expected to support Diagnostear in achieving its business objectives to commercialize the product for dry eye and complete the development of the red eye detection product. Both are parts of the company's strategy to become a global leader in diagnosing front-of-the-eye diseases through tear analysis in clinics. The registration for trading in Canada is expected to allow Diagnostear to increase awareness of its activities and effectively promote its plans."

For forward looking statement, please see BioLight's report to the Tel Aviv Stock Exchange dated June 5 2023.

For further information please contact:
Yaacov Michlin
CEO
BioLight Life Sciences, Ltd.
[email protected]

SOURCE BioLight Life Sciences Ltd.