VolitionRx Limited (NYSEAMERICAN:VNRX) announced Friday that its subsidiary Belgian Volition SPRL has closed on its acquisition of epigenetic reagent company Octamer GmbH for $725,000 (€650,000) in cash and stock.
The company said the strategic acquisition helps secure the supply of one of the key components of its Nu.Q tests, the recombinant nucleosome used as the calibrant. The tests screen for colorectal and prostate cancers.
Volition also announced the receipt of additional non-dilutive funding in the form of a $550,000 (€500,000) unsecured loan from Namur Invest to assist with the Octamer acquisition. This takes the total non-dilutive funding provided by the Namur Regional Government in Belgium and associated agencies to over $7 million (€6.3 million) to-date.
“This acquisition means that we will be working with one of the world's leading nucleosome experts, Dr Adrian Schomburg,” said CEO Cameron Reynolds in a statement.
“Not only will this deal secure the supply of a wide range of our key components, but it will also facilitate the transfer of know-how and expertise so that we can develop the capability to manufacture recombinant nucleosomes in Volition's laboratory. This deal enhances our goal of becoming one of the world's leading epigenetics companies. I would like to thank Namur Invest for their continued support of our many projects."
Regarding the transaction, Dr Schomburg noted: "I believe that the progress that Volition has made to date on nucleosomes in circulation is very exciting and I have confidence that this deal is a good convergence of our two technologies and companies. I look forward to working together to bring these transformative diagnostic agents into everyday diagnostic practice."
The purchase price consists of €350,000 ($388,307) in cash and about 73,000 shares of common stock of Volition for 100% of the outstanding shares of Octamer.
In connection with the transaction, the parties also entered into a five-year royalty agreement that provides for single-digit royalties based on the sales by Octamer of recombinant nucleosomes to pharmaceutical companies for use in the development, manufacture and screening of molecules for use as therapeutic drugs, as well as a consulting arrangement with Dr Schomburg.
Volition said the unsecured $550,000 (€500,000) loan from Namur Invest is to assist with the acquisition. The loan bears interest at 4.80% per year with favorable repayment terms over 3.5 years and includes a 16-month grace period for principal repayment.
Volition's research and development activities are centered in Belgium, with additional offices in Texas, London and Singapore, as the company focuses on bringing its diagnostic products to market.
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