Under the terms of the LOI, Biomagnetics is expected to acquire all assets of Hubei Tianyuan Chemical, a manufacturer of the organic compound dimethyl ether (DME).
Biomagnetics expects the proposed acquisition to be third of several planned acquisitions and also one of several Chinese technology and product acquisitions targeting a Biomagnetics common share price in excess of $1.50.
Relative to the acquisition of Hubei Tianyuan Chemical, Biomagnetics will issue a total of 24 million shares of common stock for the purchase at a share value targeting $1.50 per share.
Biomagnetics Diagnostics CEO Clayton Hardman said that the use of DME as a fuel substitute is growing at a rapid pace within China and the Hubei Tianyuan Chemical plant is currently producing this product and is achieving significant revenue streams and growth, which will be fully integrated into Biomagnetics income statement.
“The firm has recently undergone a thorough audit, which we are currently reviewing. Our Chinese partners at Hubei Tianyuan Chemical are valuing common shares of Biomagnetics Diagnostics at $1.50,” Hardman said.
