SILVER SPRING, MD--(Marketwired - Jul 16, 2013) - Nuvilex, Inc. (OTCQB: NVLX), (the "Company"), an international biotechnology company and provider of natural products and cell and gene therapy solutions for the treatment of diseases, announces it has returned 100 million shares of its issued and outstanding common stock that had been held in escrow to the Company's treasury after completing the $1.5M cash acquisition of all of the shares of Bio Blue Bird AG ("BBB"), the former subsidiary of SG Austria Private Limited (SG Austria).
As a result of this all-cash transaction, BBB is now Nuvilex's debt-free wholly-owned subsidiary and Nuvilex owns exclusive worldwide licenses associated with the live-cell encapsulation-based pancreatic cancer treatment. These licenses include worldwide rights to utilize the live-cell encapsulation platform technology to develop treatments for any and all cancer types, regardless of the cell type encapsulated.
Dr. Robert Ryan, President and Chief Executive Officer at Nuvilex stated, "The modifications made in structuring this transaction resulted in a significant and beneficial event for the Company and its shareholders. We were also able to execute the transaction without transferring to SG Austria the 100 million shares initially held in escrow to complete the acquisition. The advantage to our shareholders is a reversal in what would have been an approximately 20% dilutive event of the total outstanding company stock if we would have acquired the SG Austria assets and personnel, as was originally contemplated.
Now, because we acquired 100% of the BBB equity, the subsidiary with the technology licenses and assets, and a 14.5% interest in SG Austria, the Company and our shareholders have realized a substantial non-dilutive net gain because the 100,000,000 shares have now been returned to the Company's treasury. Additionally, we have avoided a significant increase in anticipated operating expenses that would have been associated with the original Asset Purchase Agreement, saving critical capital for use in preparing future clinical trials. The funding and subsequent acquisition has created the driving force and capability to immediately proceed with the preparations for the pancreatic cancer clinical trials."
Nuvilex, Inc. (OTCQB: NVLX) has been a provider of all-natural products for many years and have increased our natural product-based footprint. Today, Nuvilex is an international biotechnology provider of live, therapeutically valuable, encapsulated cells for research and medicine, presently focusing on developing treatments for cancer, with additional planning underway using the Company's natural product knowledge, product base, cell and gene therapy expertise, and live-cell encapsulation technology, in addition to other new products currently under development.
Safe Harbor Statement
This press release contains forward-looking statements described within the 1995 Private Securities Litigation Reform Act involving risks and uncertainties including product demand, market competition, and meeting current or future plans which may cause actual results, events, and performances, expressed or implied, to vary and/or differ from those contemplated or predicted. Investors should review and understand all risks set forth in our Annual Report on Form 10-K before making an investment decision. Readers are recommended not to place undue reliance on forward-looking statements or information. Nuvilex is not obligated to publicly release revisions to any forward-looking statement, reflect events or circumstances afterward, or disclose unanticipated occurrences, except as required under applicable laws.