D Medical Industries' subsidiary NextGen Biomed, has entered into a definitive agreement to acquire the shares of ClearPath and Innosense, two privately held Israeli companies engaged in the functional food and beverage industry (the Acquired Companies).
Subject to certain conditions precedent and subsequent, NextGen (company) will acquire the shares of the Acquired Companies in exchange for the issuance of shares of company constituting 76.3% of the issued and outstanding share capital of company after the issuance.
In addition, options to purchase shares of the Acquired Companies will be substituted by options to purchase shares of NextGen.
D Medical CEO Efri Argaman said that the completion of the transaction is expected to be truly a win-win for D Medical and NextGen.
"It would allow us to invest all of our resources towards the successful launch of our diabetes treatment and drug delivery products into our five initial target markets – Mexico and the BRIC countries of Brazil, Russia, India and China – commencing in 2011," Argaman said.
At the same time, it would position NextGen, in which we are maintaining a continuing ownership stake, on an exciting new path of its own."