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ImmunoPrecise Antibodies set to buy ModiQuest in C$10.5mln deal

The deal allows IPA to become a single source provider of services across the full antibody discovery value chain, the firm told investors.
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IPA develops antibodies to support research and development programs

ImmunoPrecise Antibodies Ltd (CVE:IPA, OTC PINK:IPATF) is set to buy ModiQuest Research BV in a C$10.57mln deal, which bolsters its global acquisition strategy and will add to both revenue and earnings, it said.

It allows IPA to become a single source provider of services across the full antibody discovery value chain, it told investors.

In simple terms, IPA develops antibodies to support research and development programs at pharmaceutical and biotechnology companies, as well as academic research labs.

Targetting antigens..

Antibodies  can target molecules, or antigens. They are produced by the immune  system to help stop intruders from harming the body.

This acquisition will enhance the firm's capacity for generating human antibodies, it said.

Privately-held ModiQuest, based in the Netherlands, can generate very large panels of monoclonal antibodies from various backgrounds including mouse, rat, rabbit, chicken, llama and human

ModiQuest serves clients in Europe, the US, Asia and Russia and during 2016, it posted revenues of €2,009,374 (CAD $3,037,249) and earnings of €671,799 (CAD $1,015,451).

"In acquiring ModiQuest Research B.V, IPA becomes a leading integrated antibody solutions company with global reach," said Dr James Kuo,  chairman and interim president of the company.

A binding letter of intent..

Under a binding letter of intent, the  parties have agreed to negotiate a definitive agreement, whereby IPA will acquire all ModiQuest shares for C$10.57mln, of which C$3.775mln will be paid in cash on closing.

Also, C$3.775mln  will be satisfied by issuing around 6.6mln shares on closing, and C$2mln in deferred payments over three years.

The deferred payments will be made in three equal installments of cash and equity totaling (C$$1,006,665) on each anniversary date following closing of the transaction.

The parties will be entitled to carry out due diligence of each other until February 15 next year, and if satisfied, will  enter a definitive agreement by February 28.

Shares added over 5% to C$0.60 each..

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