Biomagnetics Announces LOI to Acquire Hubei Tianyuan Chemical Company–Third Chinese Asset Targeted at $1.50 BMGP Share Price
SAN FRANCISCO-- August 27, 2010 (BUSINESS WIRE)--Biomagnetics Diagnostics Corp., (PINK SHEETS: BMGP)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 Hubei Tianyuan Chemical Co., Ltd. of Yangxin Nacheng Chemical Industry Zone, located in Hubei Province, China. This expected acquisition is the third of several planned acquisitions targeted at a share price in excess of US $1.50 for Biomagnetics Diagnostics’ common shares. Biomagnetics plans to rapidly transition the trading of its shares to the OTCBB.
Under the terms of the LOI, Biomagnetics will acquire all assets of Hubei Tianyuan Chemical, a manufacturer of the organic compound dimethyl ether (DME). DME is widely used in China as a substitute for propane used as fuel in household and industry applications.
Biomagnetics expects this proposed acquisition to be one of several Chinese technology and product acquisitions targeting a Biomagnetics Diagnostics common share price in excess of $1.50. These acquisitions are expected to result in relatively minor amounts of shareholder dilution that will result in a fully audited and fully reporting company with approximately $60 million of assets and tens of millions of dollars of revenues annually. The Company expects to announce two additional acquisitions over the coming weeks and months. Relative to the acquisition of Hubei Tianyuan Chemical, Biomagnetics will issue a total of 24 million shares of common stock for the purchase at a share value targeting US $1.50 per share. Biomagnetics believes this acquisition is being acquired at a highly attractive valuation for current common shareholders.
“The use of DME as a fuel substitute is growing at a rapid pace within China. The Hubei Tianyuan Chemical plant is currently producing this product and is achieving significant revenue streams and growth, which will be fully integrated into our income statement,” commented Clayton Hardman, CEO of Biomagnetics Diagnostics. “The firm has recently undergone a thorough audit, which we are currently reviewing. Our Chinese partners at Hubei Tianyuan Chemical are valuing common shares of Biomagnetics Diagnostics at US $1.50. Simply put, we believe this acquisition adds tremendous value for the current BMGP shareholder. We continue to believe our common shares are significantly undervalued relative to our strong opportunities in the medical diagnostics arena and very large revenue and profit opportunities relative to these expected Chinese acquisitions.”
About Biomagnetics Diagnostics Corp.
Biomagnetics Diagnostics Corporation is an advanced medical device and biotechnology company. The Company’s revolutionary diagnostic systems, which are based on advanced magnetics, test for any viral or bacterial disease using any body fluid. The Company's technology allows laboratories to perform far more tests in the same amount of time it takes to do a single test. The HTS-MTP platform is designed to detect the actual virus and viral load in body fluids and not just simply screen for the presence of viral antibodies. More information on Biomagnetics Diagnostics Corp. can be seen at www.BiomagneticsBMGP.com.
Joe Noel, 925-922-2560
Biomagnetics Diagnostics Corp.