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CardioGenics Enters Into Binding Letter of Intent to Acquire Assets of Ontario-Based Plasticap
CardioGenics Enters Into Binding Letter of Intent to Acquire Assets of Ontario-Based Plasticap.
About this update from Cardiogenics Holdings Inc
[{"type":"text","content":"\n \n \n CardioGenics Enters Into Binding Letter of Intent to Acquire Assets of Ontario-Based Plasticap\n \n \nCardioGenics Enters Into Binding Letter of Intent to Acquire Assets of Ontario-Based Plasticap\n \n MISSISSAUGA, ON--(Marketwired - Oct 5, 2015) - CardioGenics Holdings Inc. (OTCQB: CGNH), developer of the ultra-sensitive QL Care™ analyzer, an immunoassay point-of-care analyzer, and other products for the In-Vitro-Diagnostics (\"IVD\") testing market, announced today that it has entered into a binding letter of intent to acquire substantially all of the assets of Plasticap (\"LOI). CardioGenics previously announced on August 25, 2015 that it had entered into a manufacturing agreement with Plasticap, pursuant to which Plasticap will manufacture CardioGenics' proprietary self-metering cartridges for its QL Care™ analyzer. \n The Purchase Price to be paid by CardioGenics for the Plasticap assets includes the issuance by CardioGenics of preferred stock, common stock and warrants to purchase CardioGenics common stock, as well as the assumption of certain debt instruments of Plasticap, the details of which are set forth in the LOI.\n CardioGenics also has engaged AFI Limited of Ontario, Canada to assist in raising short-term capital for CardioGenics.\n \"We are looking forward to completing our transaction with CardioGenics and becoming part of the CardioGenics team,\" stated Tom Lato, President of Plasticap. \"Plasticap's precision manufacturing capabilities will allow CardioGenics to manufacture its proprietary self-metering cartridge in-house thereby maintaining greater quality control and cost efficiencies in the manufacturing process,\" continued Mr. Lato.\n The parties are currently finalizing the due diligence process. The LOI is subject to the parties entering into definitive agreements for the acquisition. If the parties have not entered into definitive agreements for the acquisition by October 15, 2015, either party my, by written notice to the other, terminate the LOI.\n A Current Report on Form 8-K containing further details regarding the LOI and our proposed acquisition of the Plasticap assets will be filed by the company and will be available on EDGAR.\n ABOUT PLASTICAP\n Plasticap has been in operation for more than 50 years, having started in 1963 operating out of a single facility in Richmond Hill...