Advanced Oxygen Technologies, Inc. announces plan to sell its technology to Grace subsidiary.
The agreement is subject to approval of the Company's stockholders, which will be sought by written consent solicited through a proxy statement.
The Company expects that a majority of Grace's near term efforts to commercialize the Company's technology will be focused in the area of oxygen scavenging for food and beverage packaging. Specific applications in this area include crowns and closures for bottled foods and beverages, bag-in-box fitments and bags, plastic films and coatings for cans and aseptic packages. A majority of the Company's development efforts during the past 5 years had been committed to use of its scavenging technology for food and beverage packaging. Numerous product test packs were conducted during that period, many of which confirmed the technology's ability to remove residual amounts of oxygen from packages, thereby contributing to overall fresher food and beverage products.
Following the sale, the Company's only material remaining assets will be its status as a publicly-held corporate shell and its net operating loss carryforward, which approximated $22 million at June 30, 1994. The Company will explore the possibility of realizing value for the stockholders from these assets in one or more transactions with third parties. Depending on the form of such transactions, the Company may remain in existence as a publicly held Company but in a new, unrelated business, or it may have to be liquidated and dissolved. If no transaction occurs before the Company depletes its cash, the Company will have to be liquidated and dissolved. Accordingly, besides approving the sale to Grace, stockholders are being asked to approve a contingent plan of liquidation and dissolution to be implemented if necessary and without having to secure further stockholder approval.
CONTACT: Advanced Oxygen Technologies, Inc., Emeryville
David Overmyer, 510/521-4331
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|Date:||Feb 10, 1995|
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