28/09/2007 - 16:04

Advanced Ocular sells IP rights for $1.1m

28/09/2007 - 16:04

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Nedlands-based ophthalmology product development company Advanced Ocular Systems Ltd has sold the intellectual property rights to its Corneal Inlays project to a US company for around $1.1 million, the company has announced.

Advanced Ocular sells IP rights for $1.1m

Nedlands-based ophthalmology product development company Advanced Ocular Systems Ltd has sold the intellectual property rights to its Corneal Inlays project to a US company for around $1.1 million, the company has announced.

Advanced Ocular will use cash raised from the sale, to US-based Acufocus Inc, to pay off creditor commitments and increase working capital.

 

 

The full text of an AOS announcement is pasted below

The board of Advanced Ocular Systems Limited (AOS) is pleased to announce the sale of its PAI LASIK and CLK intellectual property ("Corneal Inlays" project) to a U.S ophthalmic development company, AcuFocus, Inc of Irvine, California (The Intra Cornea Company).

The gross proceeds to AOS from the sale were US$1.0 million in cash, plus 25,000 stock options in Acufocus, Inc with a strike price of US$1.38 per share. Cash proceeds have been applied to creditor commitments and to increase working capital cash.

The Corneal Inlays IP was forecast for sale by AOS in May this year at the AGM presentation. The Company also advises it is in advanced negotiations for the disposal of the remaining minor pharmaceutical development IP. This will not render any significant cash to the company however it will further reduce ongoing IP costs.

As outlined at the AGM and in the recent rights issue prospectus, the Company is focused on reducing costs and moving towards a cash flow positive business model. To reiterate, under the new operating structure, AOS will:

  • Seek to invest in profitable, cash flow positive projects.
  • Assess the best commercial development path for the sole remaining development asset, Omnifocal IOL;
  • Hold investments that can provide immediate income and long term gains for the Company.

The Company's core investments are now as follows:

  • TA license to Alcon Manufacturing, Inc
  • Kellan IOL license to Lenstec, Inc (Tetraflex™)
  • Share investment in Biovision AG
  • Kellan Omnifocal™ IOL - development project

The Company is still in active discussions regarding the de-merger of some or all these assets into a new listed company. Further information on this process will be provided to shareholders if and when formal commitments are concluded.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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