ImmunoPrecise Antibodies LTD. ("ImmunoPrecise" or the "Company") (TSX VENTURE: IPA)(OTC PINK: IPATF) is pleased to announce that it has acquired all of the issued and outstanding shares of ModiQuest Research BV ("ModiQuest"). As a result of the acquisition of ModiQuest, ImmunoPrecise is now an innovative, integrated antibody solutions company focused on the next generation of technology behind therapeutic antibody discovery.
Financial Benefits of Acquisition
Anticipated accretive annualized revenues of between C$3.5M to C$4.5M for fiscal 2019.*
Anticipated accretive annualized EBITDA of between C$750,000 to C$850,000 for fiscal 2019.*
European operations now account for approximately 66% of corporate revenues.
ModiQuest operations experience high gross margins of approximately 73%.*
Strategic Benefits of Acquisition
Creates single source provider of services across the full antibody discovery value chain, such as an increased variety of therapeutically-focused methods of immunization and antigen design, including several, highly effective methods of genetic immunization with multiplexed screening, B-cell screening and sorting technologies, efficient antibody expression, stable cell line development, and lead selection, optimization and characterization.
Acquisition of next generation antibody discovery technologies, building on ImmunoPrecise's goal of revolutionizing therapeutic antibody discovery:
ModiVacc™: a novel and proprietary technology based on immunization with an augmented, lymphoid tumor cell line, ideal for generating strong immune responses against low immunogenic or difficult targets.
ModiSelect™: a proprietary technology for antigen-specific B-cell isolation from immunized animals and humans, resulting in large numbers of high affinity, pre-defined, therapeutic and diagnostic antibodies.
ModiXpress™: a proprietary and cost-efficient platform for rapid cloning, selection for high expression, purification of antibodies and stable cell line development.
ModiFuse™: a proprietary and highly-scalable electrofusion, more than fifteen times (15x) efficient than traditional PEG-fusions.
ModiPhage™: human patient, human and llama (VHH and scFv) naïve, and custom phage libraries with supporting, customizable services.
ModiTune™: antibody chimerization with any Fc region of choice, robust and efficient humanization services, and affinity maturation.
Overall increased probability of discovering therapeutically-relevant antibodies, which translates into greater success at clinic level.
Jennifer Bath, CEO of ImmunoPrecise stated, "Our acquisition of ModiQuest confirms our commitment to excellence as a CRO focused on the next generation of antibody discovery. Utilizing our teams' extensive experience, combined with ModiQuest's proprietary technologies, will further reduce timelines and enhance our unique capability to generate therapeutic antibodies with the highest probability of clinical success, as ImmunoPrecise continues to bring all related, core activities within one company. The acquisition is immediately accretive and will have a positive impact on consolidated revenues and earnings in the near future."
Terms of Acquisition and Financing
ImmunoPrecise acquired ModiQuest and its sister entity, Immulease B.V. ("Immulease"), for an aggregate purchase price of €7,000,000 (C$11,200,000) (the "Purchase Price"). Immulease is a holding company owning research equipment used in ModiQuest's operations. €5,000,000 (C$8,000,000) of the Purchase Price was paid on closing, consisting of €2,500,000 (C$4,000,000) in cash and 6,600,399 common shares of ImmunoPrecise (valued at a price of €0.38 (C$0.57) per share). The remaining €2,000,000 (C$3,200,000) of the Purchase Price will be paid in three annual installments of consisting of equal parts cash and equity. The annual installment payments will be adjusted downwards (but not upwards) on a prorated basis if ModiQuest's EBITDA for the fiscal year preceding the date of payment i...
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