24 Jan 2007 07:00
Embargoed: 0700hrs 24 January 2007
Akers Biosciences, Inc ('Akers' or the 'Company') Acquisition of 'Bout Time Marketing, LLC
Akers Biosciences, Inc. (LSE.AKR) is pleased to announce that it has agreed to acquire the key assets of `Bout Time Marketing, LLC, ('BTM') of St. Petersburg, Florida, USA, for an initial consideration of $1,000,000 in cash and warrants to purchase 750,000 shares in Akers at a price of 45 pence per share, being Akers' closing price on 23 January 2007. Further consideration of up to $500,000 in cash, and additional warrants to purchase up to 750,000 shares at the same price will be payable subject to the achievement of certain performance related criteria. All warrants granted in relation to this acquisition will expire 5 years from the date of issue.
BTM is a significant distributor of disposable alcohol breathalyzers to the U.S. Military and retail markets. Its Legal Limit product line and Alcohol Safety Program were amongst the first products to address responsible alcohol consumption by consumers. Akers has been the sole manufacturer of BTM's alcohol breathalyzers for the past 5 years.
Through this acquisition, the Company now owns the Legal Limit product line, one of the industry standards, and BTM's customer base. The acquisition gives the Company direct access to these customers, which is especially important in view of the rapidly expanding market resulting from new U.S. Military programs. The success of the initial trials with the U.S Military in reducing alcohol-related incidents leads the Company to expect to receive significant U.S. Military contracts for this product line in 2007.
Following the acquisition of BTM, Akers will benefit from increased margins and distribution channels for its alcohol breathalyzer products. In addition, cost savings will arise from the integration of BTM's operation into Akers, which last year acquired WNCK, Inc., another major distributor of these products.
This acquisition represents another significant step in the Company's strategy to transform the portable alcohol breathalyzer industry. The Company has positioned its breathalyzers as security and safety devices by enhancing the technology through the development of electronic readers. The Company believes that this new product positioning, together with the addition of the Legal Limit products will enhance market penetration and profit margins.
Dr. Ray Akers, CEO of Akers Biosciences, Inc. said, "We are very pleased to add the well established Legal Limit product line to our BreathScan and Breath Alcohol Check alcohol breathalyzers. Together, Akers and BTM will make for an even stronger team in the marketplace. This marks the second acquisition for our company in the portable alcohol breathalyzer industry, and we are pleased to report that our strategy to become one of the major players in this industry is proceeding according to plan. We are confident that these products will make a positive financial contribution to our Company in the current year."
Enquiries:
Dr. Raymond Akers Chief Executive Officer, 020 7917 9476
Akers Biosciences, Inc.
Paul Freedman Chief Financial Officer, 001 856 848 8698
Akers Biosciences, Inc.
Ben Simons Hansard Communications 020 7245 1100
Akers Biosciences, Inc. develops, manufactures, and supplies rapid, point of care screening and testing products designed to bring healthcare information both rapidly and directly to the patient or healthcare provider. The Company has advanced the science of diagnostics while responding to major shifts in healthcare through the development of several proprietary platform technologies. The company's state-of-the-art rapid diagnostic assays can be performed virtually anywhere in minutes when time is of the essence. Akers has aligned with major healthcare companies and high volume medical products distributors to maximize product offerings, and to be a major worldwide competitor in diagnostics. Additional information on the Company and its products can be found at www.akersbiosciences.com.
AKERS BIOSCIENCES INC