HepaLife Technologies has acquired all of the issued and outstanding common and preferred shares of transdermal drug delivery platform and wound care device manufacturer AquaMed Technologies in exchange for 84.8m shares of HPLF common stock. As a result of the merger, AquaMed became a wholly-owned subsidiary of HepaLife.

HepaLife Technologies is the developer of HepaMate, an extracorporeal cell-based bioartificial liver system designed to combine blood detoxification with liver cell therapy to provide whole liver function in patients with the most severe forms of liver failure.

AquaMed develops, manufactures and markets high water content, electron beam cross-linked, aqueous polymer hydrogels used for transdermal drug delivery, wound care, medical diagnostics, and cosmetics.

HepaLife consummated private placements on May 11, 2010 of 9,400,000 units of its securities and on May 14, 2010 of 2,000,000 units of its securities at a price of $0.125 per unit and received aggregate gross proceeds of $1,425,000.

Each unit consisted of one share of HepaLife Common Stock, one half of one five year Series E Stock Purchase Warrant with an exercise price of $0.16 per share, and one half of one five year Series F Stock Purchase Warrant with an exercise price of $0.20 per share.

As a result of the transaction, effective May 11, 2010, Amit Dang resigned as president and CEO of HepaLife. Richard Rosenblum assumed the title of president of HepaLife and David Stefansky became its chairman. Matthew Harriton will serve as CEO of the AquaMed subsidiary.

Mr Dang said: “We believe that the acquisition of AquaMed with its proven delivery platform and experienced management team will enable the company to continue to build shareholder value and advance the commercialisation of the HepaMate product.”