Date: Oct 16, 2011 Source: proactiveinvestors.com (
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Helicon Group (ASX: HCG) has executed a definitive agreement to acquire Massachusetts based Aspen Medisys, LLC, a company that develops magnetically energized thermotherapies for the treatment of cancer and other diseases.
The company has moved out of a trading halt on the announcement.
The acquisition enables Helicon, a healthcare and medical devices company, to seize an opportunity to further identify, acquire and commercialise late stage therapeutic delivery technologies.
Consideration will comprise a nominal upfront payment, followed by performance- and time-dependant milestone payments to be made in the form of Helicon shares.
The first such milestone payment, being $1.410 million in HCG scrip, will be made at Helicon's discretion on or before July 1, 2012.
Previously, in the proposed transaction and key terms announced to the market in August, the first payment, was a consideration of $1.5 million in HCG scrip due on closing, to be on or before December 17, 2011.
Fabio Pannuti, Helicon's chief executive officer, said "we look forward to working with the vendors of Aspen over the coming weeks to close the transaction.
"We remain very excited about the clinical and commercial potential of Aspen's nanoparticle magnetic thermotherapy technology platform for the treatment of solid tumours and a range of other pathologies."
The company is aiming to commercialise the animal product within 18 months and will consider a time frame for the human model over the coming sixth months.
The transaction remains subject to HCG shareholder approval and satisfactory due diligence, as well as to satisfactory completion of several closing conditions.
Helicon Group targets high value markets and indications using an acquisition strategy driven by strategic value creation, patent protection and realisation criteria.
The company employs a low fixed overhead model with a panel of successful best in field regulatory, intellectual property and scientific advisors.
On September 16 Helicon received notices of acceptance from the Australian Patents Office of two patent applications in relation to the company's BreatheAssist™ product.
BreatheAssist™ is a new multi-functional nasal dilation technology. The acceptances of these two further patent applications represent important achievements in the protection of the intellectual property in Helicon's BreatheAssist™ product and boost the company's confidence in its commercial potential.
