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American Biotech Firm to buy Chinese Biofuel Company
22.07.2010 12:29 "Agro Perspectiva" (Kyiv) —
US developer of diagnostic systems and technology for infectious diseases,Biomagnetics Diagnostics Corp, is to buy the Chinese diesel biofuel developer Zhuhai Oil Energy Science and Technology Ltd.
Biomagnetics has signed a Letter of Intent (LOI) to purchase all assets of Zhuhai, which includes intellectual property for biofuel blends with low carbon footprints, plus future patents and the rights to supply the biofuel to a Guangdong-based power plant.
The acquisition will allow Biomagnetics a pivotal role in the growing biofuel industry in China.
«We are very enthusiastic about our potential participation in the ‘Green Revolution’ occurring throughout China,» said Clayton Hardman, CEO of Biomagnetics.
"While a rapid shift in energy policy is occurring throughout China, the industrial areas of southern China are seeing exceptionally strong pressure to reduce the impact of electricity production on the environment.
"The Zhuhai low carbon footprint biofuel formulations significantly reduce particulate and carbon emissions, but are still cost competitive.
"Zhuhai has not yet begun delivery under its large power plant contract, but plans commencement upon the filing of the intellectual property protection applications.
«We believe the acquisition of Zhuhai, when combined with the acquisition of the proprietary, biodegradable PVA plastic film business from Lanzhou New Technology Development, which we announced last week, add significant value to current and future Biomagnetics common shareholders, with a very minimal shareholder dilution relative to the strong set of assets and the very robust expected revenue and profit streams being acquired.»
This LOI follows the Biomagnetics’ announcement last week of an LOI to acquire Lanzhou Sanhuan New Technology Development Ltd of Ganzu, China.
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