Genesis Bioventures signs agreement for control of Mad Cow
diagnostic company
NEW YORK, June 1 /PRNewswire-FirstCall/ -- Further to a Letter of Intent
previously reported, Genesis Bioventures, Inc. (AMEX:GBI) (the "Company" or
"GBI") today announced that it has entered into a binding agreement (the
"Agreement") with Efoora Inc. ("Efoora") and Prion Developmental Laboratories,
Inc. ("PDL") to buy all of Efoora's majority interest shares owned or pledged
in PDL thereby gaining controlling interest of PDL. A Form 8-K has been filed
with the SEC in this regard. Prior to the Agreement, GBI had one-third equity
interest in PDL.
Under the terms of the Agreement, GBI will buy Efoora's 5,120,000 shares of PDL
at $0.50 per share for a total of $2,560,000 US dollars. The funds are
scheduled to be paid in installments until December 2005 but are subject to
certain milestones being met by PDL. The first installment has been paid to
Efoora and was achieved through the support of an existing shareholder of the
Company who made a further investment in GBI with the stipulation that the
funds be used to further the Company's position in PDL.
Efoora is a private corporation based in Buffalo Grove, Illinois that
specializes in the development and manufacture of medical diagnostics products. PDL is a subsidiary of Efoora, specializing in the development of diagnostic
tests to detect prion disease in both humans and animals. PDL has a USDA
approved rapid strip test for Chronic Wasting disease, which affects deer and
elk. According to a 2001 survey done every five years by the US Fish and
Wildlife Service, 10.9 million people hunt big game such as deer and elk per
year in the United States.
Using the same technology, PDL has developed a rapid strip test for Bovine
Spongiform Encephalopathy ("BSE") commonly known as Mad Cow disease. Once
approved, the test would be utilized at the "point of kill" in slaughter houses
to immediately detect the presence of BSE. The added cost of the test would be
minimal and testing every animal would be feasible. According to estimates from
the World Organization for Animal Health, over 145 million cows are slaughtered
annually in 16 major beef producing countries. Mad Cow disease has devastated
the cattle industry in North America with losses exceeding 10 billion dollars
in just the past two years.
Chairman and CEO of GBI, Greg McCartney commented, "We believe that achieving
over 90% controlling interest in PDL will be a tremendous asset to the Company. PDL's rapid strip test for BSE has the potential to change the face of the
cattle industry and ensure that all borders worldwide will always remain open
for trade. BSE free cattle would be assured on every consumer level. Based on
the global number of cows slaughtered annually, the potential number of tests
that could be sold would in turn be very lucrative for GBI and its
shareholders." About Genesis Bioventures, Inc.
Genesis Bioventures, Inc. is a biomedical development corporation focusing on
the development and marketing of novel diagnostics and therapeutics in oncology
and neurodegenerative diseases.
Statements in this press release that are not strictly historical facts are
"forward looking" statements (identified by the words "believe", "estimate",
"project", "expect" or similar expressions) within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or contribute to
such differences include, but are not limited to, continued acceptance of the
Company's products and services in the marketplace, competitive factors,
changes in the regulatory environment, and other risks detailed in the
Company's periodic report filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon
information currently known to management, and the company does not undertake
any obligation to publicly update or revise any forward-looking statements.
CONTACT:
GBI Investor Relations, (604) 542-0820, , http://www.gnsbio.com/
Aurelius Consulting Group, (800) 644-6297, ,
http://www.runonideas.com/ DATASOURCE: Genesis Bioventures, Inc.
CONTACT: GBI Investor Relations, (604) 542-0820, , http://www.gnsbio.com/; Aurelius Consulting Group, (800) 644-6297, , http://www.runonideas.com/
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