Genovis to acquire Eijdo research AB through a directed share issue

Genovis has today signed an agreement to acquire all shares in Eijdo research AB in accordance with the declaration of intent the parties signed and announced last June. Eijdo is a contract research company specialized in imaging using magnetic camera; MRT (magnetic resonance tomography). Through the acquisition Genovis has access to advanced equipment and specialty competence, which is an important condition for the company’s future business development of nanoparticles as tools in preclinical research and development.

The purchase price amounts to MSEK 4, 7 and is partly composed of a cash consideration 200 KSEK, and partly shares in Genovis AB. The non-cash issues shares are can not be traded for two years. The acquisition shall be completed by the 30th of September, and it is an important strategic step for Genovis since it strengthens the opportunities to create a market for the company’s nanoparticles in medical research. The nanoparticles combined with methods to analyse their contrasting effect using MRT, will give Genovis a distinct competitive advantage during the market introduction of products and services for medical imaging and for so called molecular imaging. - To Genovis the acquisition of Eijdo research is a prerequisite for our ambition to launch nanoparticles as tools in medical imaging. This acquisition will likely generate new discoveries and generate data that will strengthen our patent portfolio, says Sarah Fredriksson, CEO Genovis AB. The financial impact following the acquisition is limited. Eijdo has been an acting and independent company for two months, and during this period the net turnover amounted to KSEK 134 according to non-audited financial reports. Through the acquisition Genovis increases its total assets with approx. SEK 5 million, and the solidity is marginally strengthend. The cashflow is primarily affected by the cash component of the purchase price. Decision on non-cash share issue Based on the authorization of the General Annual Meeting, as decided on the meeting the 2nd of June 2009, the Board of Directors has decided to bypass the rights of the shareholders and issue 1 690 140 shares to the owners of Eijdo research AB. The subscription will be at the issue price of SEK 2,66, which is the price determined by the average trading price during the 20 trading days on First North (at OMX, Stockholm) that ended on the 19th of August, which is the day before the acquisition agreement was signed. The trading price for each individual day is calculated as the average of the highest and lowest price paid. In case the price paid was not registered, the latest price paid was included. No days without a registered price paid have been included in the calculation. Following this decision the share capital is increased to SEK 676 056. The ahares will be issued in connection with taking possession, but at the latest by 30th September.