AMDL Announces Letter of Intent to Acquire Two Chinese Pharmaceutical Firms
AMDL, Inc. announced that it has entered into a letter of intent with Jade Capital Group, Ltd., a Hong Kong company, to acquire two Peoples Republic of China-based pharmaceutical companies for up to 13,215,000 shares of AMDL common stock.
The number of shares to be issued in exchange for the stock of the two companies is dependent on the companies meeting certain financial tests for the period ending December 31, 2005. The two pharmaceutical firms manufacture a number of products, including injectables and tablets. Revenues from the two firms to be acquired are expected to be an aggregate of (U.S.) $6 million for the 12 months ending December 31, 2005.
Jade currently has various therapeutic products under development including a liver cancer treatment technology in phase 3 development. This new product is anticipated to be added to AMDL's CIT (Combination Immune Therapy) technology in order to create a broader, cancer focused, product line. These technologies are synergistic to the main focus of AMDL, which remains the monitoring and treatment of cancer.
The transaction is subject to AMDL stockholder approval and other conditions to be set forth in the definitive agreement, which is expected to be finalized by mid-December and the acquisition is anticipated to close in April 2006.
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