Bioheart Enters Agreement to Acquire Pavillion Scientific

Bioheart Inc. (OTCMKTS:BHRT) announced it has signed a letter of intent to acquire Pavillion Scientific Inc., a wholly owned subsidiary of Pavillion Foods Inc.

As quoted in the press release:

Pavillion Scientific is the provider of stem cell collection kits to both Bioheart, Inc and Vetbiologics. Management believes that the acquisition of Pavillion Scientific by Bioheart will enable Bioheart and Vetbiologics to significantly reduce their cost of goods sold and correspondingly increase their gross margin on sales. Under the terms of the letter of intent, Pavillion Foods, Inc. will receive cash, future royalties on a defined number of unit sales and Bioheart Common Stock warrants to purchase Bioheart Common Stock at a predetermined price. Upon completion of a Definitive Agreement, of which there are no assurances will be consummated, Pavillion Scientific will become an operating division of Bioheart, Inc.

Mike Tomas, president and CEO of Bioheart, commented:

Controlling our material supply chain and increasing gross margins is a key component of our strategy to grow top line revenues and expand cash flow and profit generation for the Company. Regenerative medicine and cellular therapeutics is increasing globally as a standard of care for a large number of medical conditions. Bioheart intends to be a leading provider of these therapies and having control of our product supply chain is important to our future success. Further, having control of our material supply chain provides us with the ability to more easily adapt our pricing strategies to changing market conditions. We greatly appreciate Pavillion Foods willingness to enter to this transaction and for their past and future support of Bioheart.

Click here to read the full Bioheart Inc. (OTCMKTS:BHRT) press release.