AMDL Announces Letter of Intent to Acquire Two Chinese Pharmaceutical Firms
November 22 2005 - 12:34AM
PR Newswire (US)
TUSTIN, Calif., Nov. 22 /PRNewswire-FirstCall/ -- AMDL, Inc.
(AMEX:ADL), developer and marketer of test for the early detection
of cancer and other serious diseases, announced today that it has
entered into a letter of intent with Jade Capital Group, Ltd., a
Hong Kong company, to acquire two People's Republic of China based
pharmaceutical companies for up to 13,215,000 shares of AMDL common
stock. The number of shares to be issued in exchange for the stock
of the two companies is dependent on the companies meeting certain
financial tests for the period ending December 31, 2005. The two
pharmaceutical firms manufacture a number of products, including
injectables and tablets. Revenues from the two firms to be acquired
are expected to be an aggregate of (U.S.) $6 million for the 12
months ending December 31, 2005. "We are very excited with the
opportunities this transaction offers to both our company and our
shareholders," said Gary Dreher President and CEO of AMDL. "This
acquisition is anticipated to create a lower risk, broader
operating business that takes advantage of China's growing
pharmaceutical industry." Jade's business activities in China
provide access to the fastest growing pharmaceutical market in the
world and an ideal platform to introduce our DR-70(R) cancer test
kit, Mr. Dreher said. Jade currently has various therapeutic
products under development including a liver cancer treatment
technology in phase 3 development. This new product is anticipated
to be added to AMDL's CIT (Combination Immune Therapy) technology
in order to create a broader, cancer focused, product line. These
technologies are synergistic to the main focus of AMDL, which
remains the monitoring and treatment of cancer. Frank Zhen,
Executive Director of Jade Capital Group, said that, "We share
AMDL's excitement and look to a strong future together. The
transaction will provide a unique opportunity to introduce our
products to the U.S. and world markets and to exploit AMDL's
proprietary technology in China." The transaction is subject to
AMDL stockholder approval and other conditions to be set forth in
the definitive agreement, which is expected to be finalized by mid
December and the acquisition is anticipated to close in April 2006.
About AMDL AMDL, Inc. (AMEX:ADL), headquartered in Tustin,
California, is a theranostics company, involved in the detection
and treatment of the same disease, cancer. AMDL is the inventor,
developer and worldwide marketer through exclusive distribution
agreements of the DR-70(R) non-invasive cancer blood test, which
has demonstrated its ability to detect the presence in humans of up
to 13 cancers 84 percent of the time overall. In a study published
in the Journal of Immunoassay (1998, vol. 19, pp 63-72) DR-70(R)
was shown to detect at least 13 different types of cancer (lung,
breast, stomach, liver, colon, rectal, ovarian, esophageal,
cervical, trophoblastic, thyroid, malignant lymphoma, pancreatic)
although the sample size for 9 of the cancers was not statistically
significant. Clinical trials of DR-70(R) have been conducted in
Canada, China, Germany, Taiwan and Turkey. DR-70(R) can detect many
kinds of cancer using a single tube of blood, eliminating the need
for costly, multiple tests. AMDL also owns a combination immunogene
therapy technology that is a possible treatment for those already
diagnosed with cancer and could eventually be used as a vaccine to
protect patients known to be at risk because of a family history
for certain types of cancer. The combination therapy both builds
the body's immune system and destroys cancer cells. More
information about AMDL and its additional products can be obtained
at http://www.amdl.com/. Forward-Looking Statements We intend that
the statements in this press release that are not historical
constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section
21 of the Securities Exchange Act of 1934, as amended and are
subject to numerous risks and uncertainties, including the risks
(i) that the transaction described may not be completed when
expected, or at all, (ii) the risk that the terms of the definitive
acquisition agreements may materially differ from that disclosed
herein, (iii) the risks related to the inability to obtain or meet
conditions imposed for, governmental and other approvals of the
transaction, including the approval by the stockholders of AMDL,
(iv) risks related to the uncertainty surrounding the transaction
and transactions of this type and (v) the costs related thereto. In
addition, these forward-looking statements are subject to the other
risks of AMDL's business, including, but not limited to, (a) AMDL's
failure to complete successfully the development of new or enhanced
products, (b) AMDL's future capital needs, (c) the lack of market
demand for any new or enhanced products that AMDL may develop, (d)
the lack of market acceptance of AMDL's products and its limited
revenues to date, (e) the success of competitive products, other
economic factors affecting AMDL and its markets, and (f) other
risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission. The actual results may differ
materially from those contained in this press release. The Company
disclaims any obligation to update any statements in this press
release in the event of new circumstances or unanticipated events
that may occur in the future. Contact: AMDL, Inc. Gary L. Dreher
President & CEO (714) 505-4460 DATASOURCE: AMDL, Inc. CONTACT:
Gary L. Dreher, President & CEO of AMDL, Inc., +1-714-505-4460
Web site: http://www.amdl.com/
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