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 the signing of a Letter of Intent (LOI) with Lanzhou Sanhuan New Technology Development Ltd. of Ganzu, China. This expected acquisition is the first of several planned acquisitions targeted at a $1.00 share price for Biomagnetics Diagnostics' common shares. Biomagnetics plans to rapidly transition the trading of its shares to the OTCBB upon the expected completion of its full audit and financial review, which is targeted for release within the next few weeks.
“PVA film is in huge demand worldwide in the healthcare, agricultural, meat packing industries. Lanzhou has developed a unique, proprietary and patented process for large scale manufacture. Relative to the market opportunity in the PVA market, the number of shares we are issuing for this acquisition is minimal”
Under the terms of the LOI, Biomagnetics will acquire all assets of Lanzhou, including a unique formulation of PVA film, equipment and patented manufacturing process rights, for which the company's partners, including the Chinese government, have spent more than ten years and approximately US$40 million developing. The utility patent for "Equipment of Rotary-Drum Production of PVA Film" was issued on April 14, 2008. In addition to the assets of Lanzhou, Biomagnetics will inherit an ongoing Chinese government contract for 600,000 tons annually, upon reaching that production level (gross profit is approximately $1,400 per ton) of PVA film product for a minimum of three years, although additional annual renewals are expected.
PVA, or polyvinyl alcohol film, is a high tensile strength and highly flexible plastic film, with many unique properties. PVA is fully biodegradable, with no toxins or other carcinogens, while dissolving completely in the environment.