Major Transaction Repositions Firm as Focused Bioscience Company with Strong Balance Sheet and No Debt
PURE Bioscience has signed a term sheet to sell its water treatment business to Data Recovery Continuum, Inc., a California corporation, for $2.75 million in cash plus up to $1.25 million in deferred payments over the next year.
Data Recovery Continuum is also acquiring PURE Bioscience's $1.6 million trust deed asset for cash at face value. The transaction results in combined cash proceeds of $4.35 million to $5.6 million to PURE Bioscience. Upon completion of the transaction, PURE Bioscience emerges as a totally focused bioscience company capitalized sufficiently to commercialize its powerful, least toxic and environmentally friendly technologies including its Axenohl(R) antimicrobial technology.
"This transaction means PURE Bioscience will be in an excellent financial position to focus exclusively on the further development and commercialization of our bioscience technologies," said Michael Krall, Chairman, President and CEO. "For our shareholders, this transaction relieves the need for the Company to sell stock to raise cash and should allow us to be self sufficient until our bioscience technologies result in positive cash flow."
Completion of the transaction is subject to approval by PURE Bioscience shareholders and customary closing conditions. An escrow has been opened, and the transaction is expected to be completed by Dec. 22, 2003.