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Xcorporeal signs asset purchase agreement with National Quality Care and Fresenius USA

Published on December 18, 2009 at 11:51 PM · No Comments

Xcorporeal, Inc. (Pink Sheets:XCRP) (the “Company” or “Xcorporeal”) announced today that on December 14, 2009 it signed an asset purchase agreement (the “Purchase Agreement”) with National Quality Care, Inc. (“NQCI”, and together with the Company, the “Sellers”), and Fresenius USA, Inc. (the “Purchaser”), a Massachusetts corporation and a wholly owned subsidiary of Fresenius Medical Care Holdings, Inc., to sell substantially all of the assets of the Sellers to the Purchaser for an aggregate cash purchase price of $8,000,000 (the “Purchase Price”) and certain additional royalty payment rights. The Purchase Price will be payable to the Sellers in three installments. The Company’s board of directors has unanimously approved the Purchase Agreement. The sale represents the conclusion of a process to sell substantially all of the Company’s assets. The closing is scheduled to occur on or before February 28, 2010.

In addition, the Purchaser will pay royalties to the Sellers during the life of the patents included in the HD WAK Technology being transferred to the Purchaser, as well as royalties to the Sellers during the life of the patents included in the supersorbent technology being transferred to the Purchaser.

The Purchaser also granted the Sellers an option to obtain a perpetual, worldwide license to the supersorbent technology in healthcare fields other than renal, in exchange for certain consideration to be paid to the Purchaser in the event of the exercise of the option. The option will be exercisable during the twelve-month period following the Purchaser’s receipt of regulatory approval for the sale of a supersorbent product in the United States or European Union.

The closing of the assets sale will be subject to certain closing conditions, including approvals by a majority of each of the Sellers’ stockholders. The assets sale is a key step in establishing a liquidating trust for the sole purpose of a contemplated complete liquidation of the Company. Shareholder approval will also be required for the plan of liquidation.

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