(Alliance News) - Hertfordshire, England-based investment firm Limitless Earth PLC on Friday noted that its 0.7% investee Chronix Biomedical has agreed to be acquired by Nasdaq-listed molecular diagnostics firm Oncocyte Corp Inc.
Chronix is a privately held molecular diagnostics company which develops blood tests for use in cancer treatment and organ transplants.
Under the acquisition's terms, Oncocyte will acquire Chronix for USD2.7 million in cash, USD1.5 million through the issue of 295,000 Oncocyte shares, as well as assume USD5.5 million in liabilities.
Shares in Oncocyte Corp closed 8.1% lower at USD4.53 on Thursday in New York. In after hours trade, shares fell 1.1% further to USD4.48.
Limitless Earth's shares remained untraded on Friday at 14.25 pence in London.
Oncocyte will also be obligated to pay a revenue share on the net collected revenue for certain tests and services for specific periods, and to pay a combination of cash and shares of up to USD14 million should certain milestones be reached.
The acquisition is set to be completed at the end of April. Limitless Earth holds a 0.7% interest in Chronix, as well as a convertible promissory note worth USD100,000, at an interest rate of 6% per annum.
The merger will not trigger the conversion of the not, but the company expects it to be paid in full following completion.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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