ImmunoPrecise Antibodies Ltd. signed a binding letter of intent to acquire privately held Crossbeta Biosciences BV.
Netherlands-based Crossbeta has a proprietary technology for efficient oligomer-based drug discovery, with applications in Alzheimer's; Parkinson's; amyotrophic lateral sclerosis, or ALS; and Huntington's disease.
The companies have agreed to negotiate a definitive agreement under which ImmunoPrecise will acquire all the issued and outstanding shares of Crossbeta for €8.5 million, by either issuing common shares or by issuing convertible notes that bear interest at a rate of 6% per annum on closing the deal.
In the letter of intent, the company has also commited to funding Crossbeta for €15 million. ImmunoPrecise will also commit up to €800,000 for a certain gene therapy.
The CEO of Crossbeta will sign a three-year management contract, which will include non-solicitation and non-competition clauses, and one of Crossbeta's principal shareholders will be appointed to ImmunoPrecise's board.
ImmunoPrecise and Crossbeta will carry out due diligence of each other until Jan. 15, 2018. After the completion of the due diligence, the companies will sign an agreement and lay out the terms and conditions of the deal by Jan. 30.