ImmunoPrecise to Acquire U-Protein

ImmunoPrecise Antibodies (TSXV:IPA) signed a binding letter of intent with U-Protein Express BV to acquire all issued and outstanding shares of U-Protein.
As quoted in the press release:

The key benefits of the acquisition of U-Protein by the Company are: (i) access to the European marketplace, (ii) materially accretive to the Company’s revenue, (iii) additional portfolio of services that are complementary to the Company, and (iv) diversifies and increases service offerings of the Company.
U-Protein
U-Protein is a privately held company based in Utrecht, The Netherlands and holds the rights to proprietary expression technology used in antibody production.  U-Protein is a Contract Research Organization (“CRO“) that offers fast and large-scale production of (mammalian) recombinant proteins and antibodies for research and pre-clinical applications.  During the fiscal year ended December 31, 2016, U-Protein had revenues of €1,675,354 (CAD $2,479,524) and net income of €933,749 (CAD $1,381,948) (after tax and includes extraordinary income of €290,000 (CAD $429,200)).
Terms of Transaction with U-Protein
Under the binding letter of intent, the Company and U-Protein have agreed to negotiate a definitive agreement (the “Definitive Agreement“) whereby the Company will acquire all of the issued and outstanding shares of U-Protein for €6,830,000 (CAD$10,108,400) (the “Purchase Price“), of which (A) €2,734,732 (CAD$4,047,403) will be paid in cash on closing, (B) €2,047,634 (CAD$3,030,498) will be satisfied by the issuance of approximately 3,030,498 common shares of the Company on closing, and (C) €2,047,634 (CAD$3,030,498) in deferred payments over a three year period (the “Deferred Payments“).  The Deferred Payments may be made, at the election of the U-Protein shareholder, in cash or by the issuance of up to 3,030,498 common shares over a three-year period.  The Purchase price will be paid and/or issued to each shareholder of U-Protein in proportion to their respective shareholding of U-Protein.

Click here to read the full press release.

Source: www.newswire.ca