STONY BROOK, NY--(Marketwired - May 15, 2013) - Applied DNA Sciences, Inc. (
The Purchased Assets include RedWeb's Sentry 500 Intruder Spray System, RedWeb's Advanced Molecular Taggant Technology and all products relating thereto, certain intellectual property and inventory relating to the foregoing. £40,000 of the Purchase Price shall be held in escrow for up to one year to be applied against the indemnification obligations of RedWeb pursuant to the Asset Purchase Agreement.
The deal will provide APDN with synergistic products once the RedWeb products have been further developed. The eventual result will be complementarity between the delivery systems and the two forensic marking systems. The transaction also provides APDN with a platform for further growth and expansion of its global customer list.
The two companies had previously partnered in marketing an anti-theft product, which combines RedWeb's Sentry Intruder Spray Systems with APDN's DNA evidentiary marker. APDN will be modifying both the spray system device and taggant technology platforms for acceptance in global markets. The company expects the integration of these new technologies will accelerate APDN's entry into new security markets it has been pursuing.
Commenting on the deal, APDN President and CEO, Dr. James Hayward, said: "The RedWeb deal is significant for APDN as it will provide new and compatible products that widen our product portfolio at price points that will be attractive to different customer sets. Consolidated supply will decrease the fragmentation in this market and create more powerful brands. Once improved, the outlets for the assets already exist in Europe and the US, where APDN is currently selling its DNA spray systems to protect banks, pharmacies, jewelers, railways and other markets. We intend to expand sales globally and have already put in place global sales channels that increase our market access for these eventual products."
The assets acquired by APDN in the sale include RedWeb's Advanced Molecular Taggants (which complement SigNature DNA), the anti-crime Offender and Enigma sprays, a residential-inventory taggant and the RedWeb Sentry Intruder Spray System. The associated intellectual property is a framework that APDN plans to expand.
RedWeb Tagging Systems
The Advanced Molecular Taggant ("AMT") will complement APDN's SigNature DNA tag in additional markets that vary in price tolerance and forensic and physicochemical demands. APDN secures its DNA platform by performing all authentications in house, maintaining tight controls on access to partial DNA sequences. No employees ever gain access to a customer's sequence.
RedWeb Technologies has worked with the police, and forensic specialists to ensure that RedWeb's AMT provides irrefutable evidence linking the criminal to the crime scene. RedWeb uses an independent, accredited forensic laboratory to analyze its forensic taggant codes. The use of an outside laboratory provides the opportunity for APDN to enter specific markets in which governmental policies demand analyses by government forensic labs.
APDN plans to develop a diagnostic platform to detect the AMT in the field, providing forensic detection immediately on site.
Sentry Intruder Spray Systems Intruder Marker
A Sentry 500 Intruder Spray system makes use of forensic tagging technology to deter and detect crimes such as robbery, theft, and vandalism.
The system works as a detection tool and as an effective deterrent. The intruder spray helps police to catch the perpetrator by indelibly marking them and forensically tying them to the crime scene. The bright red Sentry 500 Intruder Device may incorporate either SigNature DNA or RedWeb's AMT. Prominent warning signage completes the deterrent package. The combinations are already in use by international police forces in sting operations.
Tony Benson, APDN Risk and Security Director, added, "APDN is committed to expanding strongly in the European market. Acquiring these assets from RedWeb is an important step toward building our market share."
About Applied DNA Sciences
APDN is a provider of botanical-DNA based security and authentication solutions that can help protect products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature® DNA and smartDNA, our principal anti-counterfeiting and product authentication solutions that essentially cannot be copied, provide a forensic chain of evidence and can be used to prosecute perpetrators.
The statements made by APDN may be forward-looking in nature. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K, filed on December 20, 2012 and our subsequent quarterly reports on Form 10-Q. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
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