Printer Friendly

DISEASE DETECTION INTERNATIONAL INC. AND SALIVA RESEARCH LTD. SIGN EQUITY FINANCING, AND TECHNOLOGY SALE AND MARKETING AGREEMENTS

DISEASE DETECTION INTERNATIONAL INC. AND SALIVA RESEARCH LTD. SIGN
 EQUITY FINANCING, AND TECHNOLOGY SALE AND MARKETING AGREEMENTS
 IRVINE, Calif., Feb. 20 /PRNewswire/ -- Disease Detection International Inc. ("DDI") (NASDAQ: DDII) announced today that the company has signed definitive agreements with Saliva Research Ltd. ("SRL") related to a bridge loan, an equity financing agreement and a technology sale, cross licensing and exclusive marketing agreement between the two companies. The intent of the agreements is for SRL to make an investment in DDI and to establish a mutually beneficial relationship between the two companies to cooperate and work together in the area of diagnostic tests for HIV, hepatitis and sexually transmitted diseases utilizing whole blood and/or saliva.
 SRL is incorporated in Ireland and is in the business of acquiring and developing technologies for rapid diagnostic testing using whole blood and saliva, including devices and methods for detection of viruses or antibodies related to HIV, hepatitis and sexually transmitted diseases. SRL has formed and funded, on a private basis, an Irish stock company, Saliva Technologies, plc ("ST-plc"). The technologies and licenses of SRL acquired from DDI will be transferred to ST-plc. ST-plc intends to adapt such technology and licenses to diagnostic testing for HIV, hepatitis and sexually transmitted diseases using saliva as a testing sample. ST-plc intends to effect one or more private and public offerings in Europe and through American Depository Receipts (ADRs) in the United States. From the proceeds of those offerings, ST-plc will then make an investment in DDI's new series A convertible preferred stock. The investment will be comprised of cash and ST-plc's common stock for a total value of $5,000,000 to $5,600,000 in exchange for up to a 76 percent interest in DDI. DDI has executed a convertible secured note with SRL in the amount of $200,000 as a bridge loan.
 Following a successful equity investment in DDI, DDI will grant to SRL an exclusive license to manufacture, use and sell diagnostic products relating to blood or urine testing for detection of the HIV virus, hepatitis and sexually transmitted diseases included under DDI's patent. In consideration for the license, DDI will receive a 20 percent interest in ST-plc's worldwide gross profits realized from the future sale, distribution or licensing of all ST-plc's products incorporated within the agreement. In addition, DDI will be granted the exclusive rights to sell, market and distribute all ST-plc's HIV, hepatitis and sexually transmitted disease products within the United States and Canada once approval by the U.S. Food and Drug Administration (FDA) is obtained.
 H. Thad Morris, company president and chief executive officer, stated, "This transaction provides the necessary financial restructuring for DDI and the needed capital to establish our business base in the U.S. to market DDI's products worldwide, and to achieve a presence in HIV testing market through our relationship with SRL and ST-plc. We also have an opportunity to expand the company's product technology into new areas of diagnostic testing for certain diseases, particularly through saliva sampling." Morris commented further, "I believe that this transaction is a step forward for both companies, DDI's shareholders and for the marketplace. DDI has struggled financially since the bankruptcy of its former distributor." DDI is expected to report a loss for the year ending Dec. 31, 1991.
 Disease Detection International Inc. is a company which develops and manufactures medical rapid diagnostic test kits for infectious and sexually transmitted diseases and other human conditions. To date, the company has received FDA 510(k) approval of seven tests.
 -0- 2/20/92
 /CONTACT: H. Thad Morris, president and CEO of Disease Detection International, 714-457-1787/
 (DDII) CO: Disease Detection International Inc.; Saliva Research Ltd. ST: California IN: MTC SU: LIC


CH -- NYON1 -- 0795 02/20/92 09:06 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 20, 1992
Words:628
Previous Article:FARR CO. REPORTS HIGHER SALES
Next Article:BENIHANA NATIONAL REPORTS THIRD QUARTER/NINE MONTHS GAINS
Topics:


Related Articles
NRL SIGNS LICENSING AGREEMENT WITH USAT
DISEASE DETECTION INTERNATIONAL FILES 'IND' APPLICATION WITH FDA SEEKING APPROVAL TO BEGIN FORMAL CLINICAL STUDIES FOR SEVEN-MINUTE AIDS TEST
DISEASE DETECTION INTERNATIONAL GRANTED CANADIAN PATENT FOR RAPID TEST DEVICE AND METHODS
DISEASE DETECTION INTERNATIONAL, INC., SIGNS EXCLUSIVE DISTRIBUTION AGREEMENT FOR SEVEN-MINUTE AIDS TEST FOR ARGENTINA
AMDL ANNOUNCES EXCLUSIVE DISTRIBUTION AGREEMENT FOR DR-70(TM) CANCER TEST IN BRAZIL
AMDL ADDS TAIWAN DISTRIBUTOR TO INTERNATIONAL DISTRIBUTION AND MARKETING NETWORK
Gull Labs and Shield Diagnostics Announce Distribution Agreement
Saliva Diagnostic Systems' Product Sales, Focus on Business Operations Key to Success Investors Told at Annual Meeting
BCAM International Secures Worldwide Patent and Technology Rights for Early Lung Cancer Detection from AccuMed International.
Sanko to Distribute IGEN's M-SERIES(TM) System in Japan.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters