Business
Quest PharmaTech announces sale of non-core assets
Quest PharmaTech announces sale of non-core assets.
About this update from Quest Pharmatech Inc.
[{"type":"text","content":"\n\n\n\n\n>\n\nTrading Symbol: QPT: TSX Venture Exchange\n\nEDMONTON, Aug. 8 /CNW/ - Quest PharmaTech Inc. (\"Quest\" or the \"Company\")\nannounces that it has signed an agreement with Shanghai Gaojing Capital\nManagement Co. Ltd., to sell its manufacturing plant in China (Shanghai Hua\nGao Pellet Core Pharmaceutical Ltd. or SHGP) for gross proceeds of\n1,250,000 RMB (about $175,000). As part of this transaction, the Gaojing\nGovernment will cancel $725,000 U.S. of lease obligations owed by Quest. The\nsale of SHGP completes the Company's strategic decision to disengage\ncompletely from China.\nContinuing the Company's effort to sell its non-core assets, Quest also\nannounces the sale of its AntiCort rights back to Samaritan Pharmaceuticals,\nInc. (\"Samaritan\") for gross proceeds of $50,000 U.S. and 50,000 common shares\nof Samaritan. The sale is part of an arrangement whereby Quest has agreed to\ndiscontinue its statement of claim that was brought against Samaritan in\nMarch, 2006.\nQuest previously reported, in its Q1, 2007 financial statements, the\nsale, effective June 9, 2006, of the Company's interests in Accu-MAb to Delta\nBiotech Inc. for gross proceeds of $200,000. The Company continues to search\nfor a buyer for the Bionex line of proprietary disinfectants.\n\"The sale of these non-core assets provides Quest with much needed\nworking capital to continue its development work and also provide the Company\nwith financial breathing room as it continues to seek further financing for\nits core programs\" commented Mr. Pierre Vermette, Chief Financial Officer for\nthe Company. The Company continues to receive non-dilutive financing from two\ngovernment agencies.\nThe management is also pleased with the progress that has been made in\nadvancing the cosmetic applications of the Company's SonoLight Technology\ncloser to the marketplace with the completion of the Phase I clinical trials\nfor cosmetic hair removal. \"I remain optimistic that the Company's future\nprospects will improve as we achieve several value-driving milestones\",\ncommented Dr. Madiyalakan, Executive Chairman. As part of this strategy, Quest\nintends to utilize all available resources to take SL017 to market as soon as\npossible.\nIn other news, the Company is pleased to announce that it has secured its\nlong term laboratory space requirements by agreeing ...