TORONTO, ONTARIO--(Marketwire - Nov. 19, 2010) - Arch Biopartners Inc ("Arch" or the "Company")(CNSX:ACH)(OTC:FOIFF) announced it has agreed to terms on an option to purchase the 1/3 equity stake it does not already own (the "Minority Shares") in its American subsidiary, Colorado Cancer Therapeutics Inc ("CCT").
The Minority Shares are currently owned by University of Colorado ("CU") chemists Dr. Lajos Gera and Dr. Robert Hodges (the "Minority Shareholders"). The Minority Shareholders have granted the sole and exclusive option to the Company to acquire the Minority Shares (the "Option") in return for 500,000 common shares in the capital of Arch to each Minority Shareholder, at a deemed price of $0.80/common share for a total deemed consideration of $800,000. The Option is exercisable after November 20, 2011 and no later than May 20, 2013. (the "Option Period").
Arch has also granted to the Minority Shareholders the sole and exclusive irrevocable right to sell (the "Right to Sell") the Minority Shares exercisable up to 120 days after CCT enters into an exclusive license with the University of Colorado pursuant to the terms and conditions of an exclusive option agreement previously disclosed to the market on September 21, 2010.
There was no consideration paid for either the Option or the Right to Sell.
Colorado Cancer Therapeutics was formed to acquire and develop anti-cancer compounds invented at the University of Colorado and Emory University by Drs. Lajos Gera, Robert Hodges, Paul Bunn, John Stewart, Dan Chan, Leland Chung and Daqing Wu.
About Arch Biopartners
Arch Biopartners is a portfolio based biotechnology company established to develop new products and technology for sale to pharmaceutical and industrial companies.
For more information on the Company, please consult the other public documents filed on SEDAR at www.sedar.com. The Company's website address is www.archbiopartners.com.
All statements, other than statements of historical fact, in this news release are forward looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of the Company. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
The CNSX has not reviewed and does not accept responsibility for the adequacy of this release.