Dec 15 2010
CalciTech Ltd. (OTCBB: CLKTF) announces today the transfer of its business undertaking for Europe to a wholly-owned subsidiary, CalciTech Synthetic Minerals Europe Ltd. (“CSME”), recently established in the United Kingdom.
The European projected business has been independently valued at €64 million and the consideration is satisfied by the issue of 80 million shares of CSME at a price of €0.80 per share. CalciTech Synthetic Minerals Ltd has extended a license agreement, covering all of Europe, for exclusive use of CalciTech’s Synthetic Calcium Carbonate technology. The license is for a period of 30 years with a royalty payable of 5% of net revenues earned.
CSME has an independent UK Board of Directors and senior management and will operate independently within Europe. The recently appointed board of directors has extensive commercial, industrial and financial experience with the ability to deliver the company’s business plan. As a private company, CSME will file annual reports under IFRS accounting standards with the UK Registrar of Companies and compliant with consolidation with CalciTech Ltd.
Roger Leopard, CEO commented “The separation of operations from our intellectual property development allows for both equity and project financing to be targeted into operations in the appropriate regions.”
This follows CalciTech’s stated policy recognizing the material differences in marketplace operations by having them territorially developed through independently operating subsidiaries.