CalciTech Ltd. (OTCBB: CLKTF)
announces today the transfer of its business undertaking for Europe to a wholly-owned subsidiary, CalciTech Synthetic Minerals Europe Ltd. (“CSME”), recently established in the United Kingdom. The European projected business has been independently valued at €64 million and the consideration is satisfied by the issue of 80 million shares of CSME at a price of €0.80 per share. CalciTech Synthetic Minerals Ltd has extended a license agreement, covering all of Europe, for exclusive use of CalciTech’s Synthetic Calcium Carbonate technology. The license is for a period of 30 years with a royalty payable of 5% of net revenues earned.
CSME has an independent UK Board of Directors and senior management and will operate independently within Europe. The recently appointed board of directors has extensive commercial, industrial and financial experience with the ability to deliver the company’s business plan. As a private company, CSME will file annual reports under IFRS accounting standards with the UK Registrar of Companies and compliant with consolidation with CalciTech Ltd.
Roger Leopard, CEO commented “The separation of operations from our intellectual property development allows for both equity and project financing to be targeted into operations in the appropriate regions.”
This follows CalciTech’s stated policy recognizing the material differences in marketplace operations by having them territorially developed through independently operating subsidiaries.
The directors of the company take responsibility for this announcement.
This press release contains "forward looking statements" including forward looking statements as that term is defined in section 27a of the United States Securities Act of 1933 and section 21e of the Securities and Exchange Act of 1934. Statements in this press release, which are not purely historical are forward looking statements and include any statements regarding beliefs, expectation or intentions concerning the future. Forward looking statements in this press release include, but are not limited to statements which are subject to a number of contingencies and uncertainties, including, but not limited to, market acceptance for CalciTech's products, manufacturing of CalciTech's products in a commercial setting, obtaining adequate financing and construction management for production and obtaining appropriate permits.
It is important to note that the corporation's actual outcomes may differ materially from those in forward-ooking statements contained in this press release. Although the company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations and intentions will prove to be accurate. Readers should refer to the risks disclosures in the company's public filings with the Securities and Exchange Commission.