Biosignal and Saraya Co to commercialise anti-bacterial for...

Biosignal and Saraya Co to commercialise anti-bacterial for cooling towers and hygiene products
Saraya becomes second major Japanese investor in Biosignal. $250k placement at 15c per share
9 November 2007, Sydney: Biosignal (ASX:BOS) has signed a Letter of Intent with Japanese health and sanitation company SARAYA CO LTD to commercialise a water cooling tower treatment as well as mouthwash products and an anti-bacterial for industrial urinals using Biosignal’s bacteria-inhibiting technology.
SARAYA has secured exclusive market distribution rights of these products in Japan, South Korea, Taiwan and Hong Kong. They have also agreed to support the fast track process for registration of Biosignal’s technology with the assistance of Mitsubishi Group, who have been retained as registration consultants.
SARAYA has also agreed to invest in a one-off placement of Biosignal securities. They will purchase 1,666,667 ordinary Biosignal shares at 15 cents per share for $250,000.
"SARAYA is the second large and highly respected Japanese company to invest in Biosignal and take a leadership position in commercialising new product applications,” said Prof. Peter Steinberg, CEO of Biosignal. “This is a level of commitment that offers the promise of a long term and very fruitful partnering. The placement above market also demonstrates the confidence of the Japanese in our technology and in the future of Biosignal.”
“Air conditioning cooling towers, mouthwash and hygiene for industrial urinals are quick-to-market products. We are aiming for rapid commercialisation to prove the utility and profound effects of our novel technology.”
The agreement comes as a result of efforts led by key Biosignal shareholder, Restoration Group, to introduce Biosignal’s technology to a range of Japanese companies. “Restoration Group owns a considerable portfolio of inner-city buildings where the technology, once approved, will find a ready market,” said Director Gunter Pauli, who engineered the agreement and is overseeing the implementation.
The agreement details intended license terms between the two companies. Terms also include a facility for negotiating appropriate disposition of improved intellectual property between both parties. Biosignal will be paid a royalty on sales.
A binding agreement is expected to be signed before the end of 2007.