Commonwealth Biotechnologies, Inc. (“CBI”) (NASDAQ: CBTE) is pleased to announce that it has completed the divestment of the assets (excluding land and buildings) of its bioanalytical and genetic testing business units, CBI Services and Fairfax Identity Laboratory (FIL) for a cash consideration and an ongoing lease commitment for 5 years.
The purchaser of the business assets and lessee, Bostwick Laboratories Inc, is a national pathology laboratory, headquartered in Richmond, VA.
Dr. Richard J. Freer, COO of CBI said, “The sale of these business units satisfies a key condition precedent in CBI’s acquisition of GL Biochem, announced on June 8, 2009. The divestment of the assets of CBI Services and FIL is in line with CBI’s strategy to create the global leader in pre-clinical peptide synthesis and development.”
Dr. Paul D’Sylva, Director said that, “CBI’s balance sheet and profit/loss statement will be significantly strengthened through this transaction because it eliminates ongoing earnings losses, provides significant ongoing fees through a leaseback from a national pathology laboratory, provides up-front cash, and allows CBI to retain its high value land and building assets. The company is now ideally positioned to close its transformational deal with GL Biochem and accelerate its growth as the world leading peptide contract research organization.”
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