Biosign Announces Proposed Divestiture

Biosign Technologies Inc. (TSXV: BIO) announced that under a letter of intent dated January 21, 2016, it intends to sell 70% of the shares issued and outstanding of Aiomed as well as 76% of the voting rights subject to finalizing a purchase and sale agreement and obtaining regulatory and shareholder approval.
According to the company’s press release:

Pursuant to the LOI, the Company agreed to sell the Aiomed Shares in exchange for:

• Receipt of £1.05 million (circa CAD$2.1 million) in shares of Quob Park Estates (“QPE”).
• €1 million (circa CAD$1.5 million) repayment against the loan payable by Aiomed to Biosign on or before November 30, 2016.
• Loan Notes of €875,000 (CAD$1.3 million) to Aiomed to repay a debt to the Founder of Aiomed (“Founder”) on or before August 31, 2016.

In addition, QPE has agreed to provide loans to Biosign up to €650,000 (circa CAD$1 million) to fund Biosign operations for the period up to the date of a Special Shareholder Meeting (“Shareholder Meeting”) required to approve the Divestiture (“QPE Loan”). The QPE Loan is secured by a first charge over all the shares in Aiomed held by Biosign as well as the €1 million loan payable by Aiomed to Biosign and bears interest at 14.5% per annum above the Bank of England rate. The QPE loan is repayable on demand and is to be repaid after the Shareholder Meeting in the event the Divestiture is not approved by the Company’s shareholders or is repayable from the proceeds of the QPE repayment of the loan payable by Aiomed if Biosign shareholders approve the Divestiture.

Michael Gross, Chairman and CEO, commented:

This Divestiture will provide Aiomed the ability to continue to deliver on its business plan while allowing Biosign to participate in the future success of Aiomed and QPE through its holdings in both companies. We look forward to working with our new partners to grow Aiomed and contribute to QPE’s success going forward.

Click here to view the full press release.