Biomagnetics Announces LOI to Acquire Lanzhou New Sunshine Plastics Industry LTD Fourth Chinese Asset Targeted at $1.50 BMGP Share Price
SAN FRANCISCO-- August 30, 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 Lanzhou New Sunshine Plastics Industry LTD. This expected acquisition is the fourth planned acquisition targeted at a share price of US $1.50 for Biomagnetics Diagnostics’ common shares.
Under the terms of the LOI, Biomagnetics will acquire all assets of New Sunshine Plastics manufacturing facility, and issue 4,220,000 shares of Biomagnetics common stock. Biomagnetics intends to use this manufacturing facility to house the equipment and technologies being acquired from Lanzhou Sanhuan New Technology Development Ltd. in order to meet the strong and growing Chinese and worldwide demand for biodegradable PVA plastic film.
Clayton Hardman, President and CEO of Biomagnetics commented, “We originally planned to build a new manufacturing plant to produce our PVA biodegradable plastic, but when this opportunity was presented, it was obvious this would be our best course of action. By acquiring New Sunshine we will be able to avoid the time and expense of new construction allowing us to begin producing this revolutionary biodegradable PVA plastic film much sooner. There is clearly a huge demand for this product and considering the large contract we already have for this plastic film, getting to the revenue production phase quicker will significantly benefit our Company and its shareholders.”
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.