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Biomagnetics Moves Zhuhai Oil Energy Acquisition from LOI to Purchase Agreement Phase - Expects Closing During CEO Trip to Chin

^{Published on 2010-09-13 06:10:50 - Market Wire}
 

SAN FRANCISCO--([ BUSINESS WIRE ])--Biomagnetics Diagnostics Corp., (PINK SHEETS:[ BMGP ]) a developer of revolutionary diagnostic systems and technology for HIV, hepatitis, tuberculosis and malaria detection, and other innovative technologies, today announced it has completed its formal purchase agreement to acquire Zhuhai Oil Energy Science and Technology Ltd., an inventor and producer of unique gasoline and diesel biofuel blends, located in Guangdong Province, China. Biomagnetics intends to close on the acquisition during the CEOa™s trip to China this week.

"We have decided to accelerate the closure of Zhuhai for several reasons. The first is the recent patent application submitted last week to protect the formulation for this unique bio-fuel blend. With the filing completed, we can now move toward a formal purchase agreement"

The Zhuhai low carbon footprint biofuel formulations significantly reduce particulate and carbon emissions, but are still cost competitive. The acquisition of Zhuhai is the second announced in a series of four planned highly accretive Chinese technology and product acquisitions designed to significantly boost Biomagneticsa™ common share value.

aWe have decided to accelerate the closure of Zhuhai for several reasons. The first is the recent patent application submitted last week to protect the formulation for this unique bio-fuel blend. With the filing completed, we can now move toward a formal purchase agreement,a commented Clayton Hardman, CEO of Biomagnetics. aThe second reason for accelerating the closure of Zhuhai is the immediacy of revenue realization. Many industrial operations in the northern areas are under intense pressure to burn cleaner fuels. One industrial plant has already signed a contract with our target company. During my upcoming trip to China my goal is to not only close this acquisition, but to make final arrangements to begin deliveries under this contract and to expand it considerably.a

During the upcoming trip to China, CEO Clayton Hardman, plans to not only visit the Zhuhai bio-fuels operation and close the acquisition, he also plans to visit the sites for operations of the other proposed acquisitions, Hubei Tianyuan Chemical, Lanzhou Sunshine Plastics and Lanzhou Sanhuan New Technology. Additionally, several meetings are schedule with government officials relative to these acquisitions.

Relative to the acquisition of Zhuhai, Biomagnetics will issue a total of 10 million shares of common stock for the purchase. Biomagnetics believes this highly accretive proposed acquisition, which is expected to begin producing substantial high margin revenue, is proposed at a significantly attractive valuation and will add meaningfully to Biomagnetics common shareholder value.

About Biomagnetics Diagnostics Corp.

Biomagnetics Diagnostics Corporation is an advanced medical device and biotechnology company and an acquirer other innovative technologies. The Company is currently developing a waveguide-based advanced integrated optical biosensor through its cooperative research and development agreement with Los Alamos National Security, LLC, which will initially be used for cholera, tuberculosis and malaria diagnosis. More information on Biomagnetics Diagnostics Corp. can be seen at [ www.biomagneticsbmgp.com ].