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Microarray Shop Med BioGene to Acquire Textile Company; Firm Will Become Publicly Traded

NEW YORK, Aug. 17 (GenomeWeb News) - Canadian microarray company Med BioGene will acquire Dragon-Tex, a publicly traded textile company, through an amalgamation agreement, and the company will become a part of MBG over the next four months, a spokesperson for Dragon-Tex told GenomeWeb News today.

The deal will enable MBG to become publicly traded and calls for Dragon-Tex to "disappear and be part of Med BioGene," the spokesperson said.

The agreement calls for the companies to take part on a reverse takeover, which is subject to shareholder approval from both firms and for Dragon-Tex to cancel half its number of issued shares.

Med BioGene's chief scientific officer, Nathan Yoganathan, said that the acquisition of Dragon-Tex, a Vancouver, BC-based textile company, was "simply a business transaction." He declined to comment on how much MBG will actually pay for the shares of Dragon-Tex to acquire the firm or about how the acquisition would benefit his company.

According to a statement issued today, MBG also recently completed a private placement resulting in proceeds of $200,000. The company has also pledged that it will initiate similar placements both prior to and after the reverse takeover that should result in proceeds of up to $880,000.