Shrink Nanotechnologies, Inc. ("Shrink") (OTC Markets: INKN), an innovative high technology company, announced today that it has executed a binding letter of intent to acquire 100% of Hawaii-based Nanopoint Inc. ("Nanopoint"), a biomedical instrumentation and microfluidics company with global distribution for its award-winning suites of life sciences products.
The transaction highlights are:
- Shrink will exchange 25,750,000 shares of its common stock for 100% of the equity interests in Nanopoint;
- Additional stock payments of up to 40,000,000 shares will be made upon Nanopoint meeting certain sales and EBITDA targets by June 30, 2012 and December 31, 2013, respectively;
- All critical Nanopoint employees will be retained, and at closing, Nanopoint will operate as a wholly owned subsidiary of Shrink;
- Nanopoint will have not less than $500,000 of cash on its balance sheet; and
- The closing, which has been set for May 31, 2011 or sooner, is subject to additional terms and conditions as well as customary due diligence by the parties.
Shrink CEO Mark L. Baum stated, "We are pleased to have the opportunity to welcome the Nanopoint team to our family. Nanopoint has built an award-winning platform of products in the life sciences space, as well as a network of global distribution for its products. Nanopoint's product line will extend Shrink's portfolio of opportunities in the drug discovery, live cell imaging, assisted reproductive sciences, stem cell research and cell culturing businesses. We believe that there is tremendous synergy between our respective products – StemDisc and Cell Align, in particular, along with work that we are doing with the Corning modular microfluidics platform, and we believe that the Nanopoint distribution group is a terrific way for Shrink to leverage on the relationships that Nanopoint has been able to build."
Nanopoint CEO Cathy Owen, stated, "Nanopoint has spent 6 years and over 6 million dollars building a world class extended live cell imaging platform and refining that platform along with our customers to meet the unique requirements of the assisted reproduction, drug discovery, and stem cell research markets. Nanopoint's robust patent portfolio and collaborative partnerships will help keep us ahead of our competitors. Our growing network of highly respected distributors in Australia, Asia and Europe will enable us to provide innovative products to research scientists across the world. The acquisition by Shrink Nanotechnologies will provide the capital and liquidity necessary to rapidly accelerate sales of Nanopoint's cellTRAY® Imaging System, cellTRAY® Microfluidics System, cellTRAY® Mini-Microscope System, and associated consumables including the patented cellTRAY® slide and newly patented cellTRAY® Dish."
Shrink Nanotechnologies, Inc.