Biomagnetics Ends Acquisition Related Quiet Period – To Spin Off Chinese Bio-Fuels Operation Into Publicly Traded Company
Business Wire “Press Releases – English “
SAN FRANCISCO –(BUSINESS WIRE)– Biomagnetics Diagnostics Corp. , (PINK SHEETS:BMGP – News) a developer of revolutionary diagnostic systems and technology for HIV, hepatitis, tuberculosis and malaria detection, and other innovative technologies, today announced its plans to spin off its Chinese bio-fuels operation, Zhuhai Oil Energy Sciences and Technology, located in Guangdong Province , China , into a separate publicly traded entity.
Over the past few months, the management team at Biomagnetics has been working on a structure that it believes will maximize shareholder value. The Company has been interviewing investment groups to facilitate this transaction. The new Company, which will trade on the OTCBB as a fully reporting organization with the SEC , will enter into a contract with Biomagnetics to purchase all intellectual property and contract rights to the proprietary low carbon fuel formulations.
A green revolution is sweeping through China resulting in a critical demand for low carbon bio-fuels. These unique formulations greatly reduce particulate and carbon emissions while still being cost competitive,? commented Clayton Hardman , CEO of Biomagnetics. We are negotiating specific terms while waiting for GAAP certified audits. Specific terms to finalize include capital compensation and percentage interest in the new company Biomagnetics will receive for selling its Bio-Fuel rights. This should add to shareholder value, and reduce or eliminate future shareholder dilution.?