NEW YORK (GenomeWeb) – Roka Bioscience announced today that it has agreed to sell substantially all of its assets to Rokabio, a newly formed subsidiary of the Institute for Environmental Health (IEH), for $17.5 million in cash.
The sale of the assets is the initial step in a contemplated liquidation of Roka. "The announcement of this asset sale follows an extensive review of a range of strategic alternatives for Roka Bioscience, including obtaining further financing to continue as an independent entity and exploring the possibility of mergers and acquisitions," Roka CEO Mary Duseau said in a statement. "This transaction represents the conclusion of a thorough process. We believe that the asset sale and anticipated liquidation will provide the greatest value to our stockholders."
The company's stockholders must approve both the asset sale and the liquidation plan. Roka will also be required as part of the deal to make a $2.5 million milestone payment pursuant to a license agreement, and will be required to provide transition services to IEH through no later than Dec. 31.
Lake Forest Park, Washington-based IEH provides risk management services to the food industry, and its subsidiaries are involved in the production and distribution of reagents, supplies, test kits, and equipment to food testing laboratories and food companies in the US, Canada, Mexico, Germany, Austria, England, China, and Australia.
Roka's shares rose 9 percent to $2.39 in morning trading on the Nasdaq.