Benitec grants Sigma-Aldrich license to RNAi patent portfolio
Sigma-Aldrich Acquires Equity Stake in Benitec
Benitec Ltd. and Sigma-Aldrich Corporation announced the signing of two major agreements, one in which Sigma acquires an equity stake in Benitec and one in which Benitec grants Sigma a license for the use of Benitec's RNAi technology. Benitec will receive more than US $4.5 million from the equity and licensing transactions, and Sigma will obtain an exclusive license to Benitec's intellectual property in the research reagent market.
In return for an exclusive license in the research reagent field, Sigma will make an initial payment of US $2.0 million as well as continuing royalties on product sales and sublicensee revenue. Sigma also receives a license in the research reagent field to patents co-owned by Benitec and Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia for its solely owned commercial rights to RNAi in "non-human applications," including its use in plants, animals, and insects.
The US $2.5 million equity investment will be made in two tranches. Sigma purchased 13,507,118 ordinary shares of Benitec for US $1.7 million. Following receipt of shareholder approval, which is anticipated, Sigma will purchase an additional 6,024,132 ordinary shares for $0.8 million. The shares in both tranches will be issued at the US Dollar equivalent of A$0.17 per share. The shares will rank equally with existing Benitec ordinary shares. Subject to the conditions of the second tranche, Sigma is further granted 10,011,643 options to purchase Benitec stock, exercisable at A$0.32 at any point prior to April 6, 2008.
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