Oculus Innovative Sciences announced it has initiated the process to create a wholly owned subsidiary that will hold the company's anti-infective drug assets. The company recently announced, that based upon market research, there appeared to be a significant opportunity for a new drug utilizing the Microcyn Technology for surgical suite use. The company's new surgical formulation has been finalized and the company is now preparing the clinical strategy in preparation for discussions with the FDA. Company management believes that the creation of this subsidiary will provide focused resources for the drug development platform as well as financing opportunities specific to the subsidiary, or future spinoff. The objective is to generate funding for the company's FDA clinical trials without issuing additional shares of the parent company.