15/11/2007 - 13:18

Eastland ups stake in Star Medical Botswana for $1m scrip

15/11/2007 - 13:18

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Perth-based Eastland Medical Systems Ltd will take a controlling stake in African drug developer Star Medical (Botswana) Ltd after acquiring a further 25 per cent of the company through a scrip issue worth $1 million, the company has announced.

Perth-based Eastland Medical Systems Ltd will take a controlling stake in African drug developer Star Medical (Botswana) Ltd after acquiring a further 25 per cent of the company through a scrip issue worth $1 million, the company has announced.

Eastland acquired a 30 per cent stake of Star in May for $900,000, after its 65 per cent owned subsidiary Eastland Medical Systems South Africa Pty Ltd signed an exclusive manufacturing agreement with the company.

Star holds the Intellectual Property for the anti malaria treatment "ArTiMist" for the continent of Africa.

 

 

 

EASTLAND TO ACQUIRE A CONTROLLING STAKE IN STAR MEDICAL (BOTSWANA) LIMITED.

The Board of Eastland Medical Systems Ltd (Eastland) (ASX: EMS) are pleased to advise that the Company has entered into a conditional Agreement to acquire a controlling stake in the share capital of Star Medical (Botswana) Limited (Star). This will result in Eastland holding in excess of 55% of the issued capital of Star.

Star holds the Intellectual Property for the anti malaria treatment "ArTiMist" for the continent of Africa.

The agreement has been negotiated by the independent directors on arms length terms with Fee-Zone Pty Ltd; a company associated with Mr. Douglas Sims, a director of Eastland and of Star, and is therefore a related party transaction.

The purchase consideration consists of a parcel of 3,506,180 Eastland shares issued as fully paid at a deemed issue price of $0.30 cents per share, ranking only on completion and with a voluntary escrow period on these shares until 30th June 2008.

The transaction is conditional on Eastland shareholder approval in general meeting.

The Notice of Meeting and relevant Explanatory Statement will be issued by the Company in due course. Pending the transaction becoming unconditional, and completion, Eastland is entitled to exercise all the voting rights attaching to the controlling stake. To ensure an arms-length deal on reasonable terms, and that Eastland interests are properly protected in accordance with the provisions of Part 2E of the Corporations Act (the giving of financial benefits to related parties), the terms of the agreement contain Fee-Zone's declaration of trust in favour of EMS to the extent of all benefits receivable which represent any excess over and above an arms length deal.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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