Alda signs LOI to acquire pharmaceutical company

2009-02-23 19:27 ET - News Release

Dr. Terrance Owen reports

ALDA ENTERS INTO NON-BINDING LETTER OF INTENT TO PURCHASE PHARMACEUTICAL MANUFACTURING COMPANY

Alda Pharmaceuticals Corp. has signed a non-binding letter of intent to purchase all of the business and undertakings of a pharmaceutical manufacturing firm which is operating a facility with both Health Canada and Food and Drug Administration approvals. In addition to being able to manufacture Alda's products, the target company has its own product lines, customers, distribution channels, revenues and the capacity for future expansion.

Under the terms of the letter of intent, Alda will pay, in total, $6-million in cash and, subject to applicable securities laws and the policies of the TSX Venture Exchange, issue two million common shares of the share capital of Alda.

Dr. Terrance Owen, president and chief executive officer, states: "This proposed acquisition is a very important event for Alda. By securing our own manufacturing capabilities, Alda can expect to be more competitive in both its established markets and in the new retail and institutional markets that are opening up to the company based on recent product developments, such as T36A antiseptic hand sanitizer gel, spray and wipes, T36A Disinfex disinfectant liquid and wipes, T36A Disinfex disinfectant cleaner, and T36A disinfectant cleaner concentrate. It will also be beneficial for Alda to have its own Health Canada- and FDA-approved facility so that products being manufactured for the impending clinical trials are fully under our control."