Eco Quest (ASX: ECQ) is to add a stem cell technology to its globally focussed environmental and life sciences portfolio through the acquisition of Cynata Incorporated.
Cynata has an exclusive world-wide license to commercialise the use of Mesenchymoangioblasts (MCAs), discovered by world leading scientists and company co-founders, Professor Igor Slukvin and Maxim Vodyanik at the University of Wisconsin - Madison (UW-M).
MCAs are the building blocks for cells in the heart and blood vessels.
Cynata was established to commercialise a stem cell platform technology, originating from the University of Wisconsin-Madison, a world leader in stem cell research.
The acquisition of Cynata will take place in two stages, which is a cash payment and a scrip component.
The plan for Cynata is to develop the technology into an “off-the-shelf” stem cell platform for therapeutic product use, with a pharmaceutical business model and economies of scale.
This has the potential to create a new standard in the emergent arena of stem cell therapeutics.
Full acquisition details:
- Investment of $250,000 which will increase the ECQ stake in Cynata to a fully diluted 33%, effective immediately.
- An option to acquire the balance of Cynata shares that it does not already own within 18 months. Consideration for the acquisition of all remaining shares of Cynata is 200,000,000 fully paid, ordinary Eco Quest shares.
Exercise of the option will be conditional on Eco Quest shareholder approval and compliance with all applicable laws and stock exchange rules.
ECQ Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
