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Isodiol International Inc. Announces the Sale of BSPG Laboratories Ltd. and Conclusion of Its Fiscal Year 2019 Business Restructurings
Isodiol International Inc. Announces the Sale of BSPG Laboratories Ltd. and Conclusion of Its Fiscal Year 2019 Business Restructurings.
About this update from Isodiol International Inc
[{"type":"text","content":"\nVANCOUVER, British Columbia, April 01, 2019 (GLOBE NEWSWIRE) -- Isodiol International Inc. (CSE: ISOL) (OTCQB:ISOLF) (FSE: LB6B.F) (the “Company” or “Isodiol”) today announced the sale of its wholly owned subsidiary BSPG Laboratories Ltd. (“BSPG”) to a U.K. based private equity group (“buyer”) for US$14,000,000 in cash installments.  As a part of the transaction, Isodiol has secured an off-take supply agreement with the buyer to ensure continued distribution of its Purodiol and Isodiolex products.\n A first installment of US $5,000,000 was paid on March 29, 2019, a second installment of US$5,000,000 is due by June 26, 2019, a third installment of US$2,000,000 is due by September 26, 2019, and a final installment of US$2,000,000 shall be payable upon the expansion of BSPG’s production capacity into its newly leased 20,000+ sq. ft. laboratory facility that is expected to increase BSPG’s capacity by 8-10 times its current capacity.  “The sale of BSPG is bittersweet for us,” said Marcos Agramont, CEO of Isodiol.  “We are great believers in the future of API CBD for clinical applications and future pharmaceutical products.  Fortunately, this sale will provide us with the supply necessary to fulfill our Purodiol and Isodiolex production needs and clinical research projects at a below market cost, with the ability to scale in step with BSPG’s expansion, but without having to incur dilution from raising the cash necessary for the expansion.  In effect, Isodiol will see a return of the cash committed to acquire BSPG, while retaining the benefits it sought in the acquisition.” Isodiol’s board of directors also has concluded its recent efforts to eliminate certain costly long-term contracts and other liabilities from its balance sheet and future cash flow obligations totalling approximately US$11,809,539 in exchange for the new issuance of 6,587,170 shares at an average weighted price of CAN$1.89 per share.  “The board of directors is pleased to be entering Isodiol’s new fiscal year commencing April 1, 2019 with a cleaner slate and focused vision,” said Agramont.  Follow Our Corporate Updates On Facebook at www.facebook.com/IsodiolInternationalInc/, on...