EDITEK, INC. ANNOUNCES INTENT TO ACQUIRE PRINCETON DIAGNOSTIC LABORATORIES OF AMERICA, INC.
BURLINGTON, N.C., Aug. 16 /PRNewswire/ -- EDITEK, Inc. (AMEX: EDI.EC) announced today that it and Princeton Diagnostic Laboratories of America, Inc. ("PDLA") (AMEX: PDA) have entered into a letter of intent to effect a merger of the two companies. Following its due diligence review, EDITEK will acquire PDLA through an exchange of stock. PDLA will be valued at $1.45 per share of PDLA common stock. EDITEK will be valued at the lesser of $5.75 per share or the average closing price of its stock over the ten trading days from Aug. 13 to Aug. 26, 1993. PDLA, a company traded on the American Stock Exchange, operates a National Institute of Drug Abuse certified laboratory located in South Plainfield, N.J., with current annual revenues in excess of $5,000,000 and approximately 50 employees. The combined companies had revenues in excess of $8,000,000 for 1992. "The acquisition of PDLA is a good strategic move for EDITEK since so much of EDITEK's current development and marketing efforts are already focused on drugs of abuse. This merger, when completed, will be a major milestone in our abused substance testing business strategy," stated James D. Skinner, president and CEO of EDITEK. "The consolidation of the two companies will create synergy in marketing comprehensive on-site and laboratory testing programs to a common customer base." Warren N. Majek, president and CEO of PDLA, said: "Our combined operations will enable the new organization to expand sales and marketing coverage without increased personnel. We expect that this will eventually result in incremental increased revenues and eventually a positive bottom line." Following the signing of the definitive merger agreement, PDLA will seek shareholder approval for the transaction. EDITEK will file a registration statement with the Securities and Exchange Commission to register the shares to effect the acquisition. EDITEK anticipates the merger will be completed by year end. EDITEK, Inc. is an emerging, biodiagnostic company with patented technology for the performance of rapid, on-site assays including one-step assays. -0- 8/16/93 /CONTACT: Peter Heath, Vice President-Finance and Chief Financial Officer, EDITEK, Inc., 919-226-6311/ (EDI PDA)
CO: EDITEK, Inc.; Princeton Diagnostic Laboratories of America, Inc. ST: North Carolina, New Jersey IN: MTC SU: TNM
MM -- CH003 -- 2912 08/16/93 09:08 EDT
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|Date:||Aug 16, 1993|
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