Arbios Sells HepatAssist Bioartificial Liver System to HepaLife Technologies, Inc.
October 07 2008 - 9:15AM
PR Newswire (US)
PASADENA, Calif., Oct. 7 /PRNewswire-FirstCall/ -- Arbios Systems,
Inc. (OTC:ABOS) (BULLETIN BOARD: ABOS) today announced that it has
sold all its rights and interest in its bioartificial liver system,
HepatAssist, to HepaLife Technologies, Inc. (OTC:HPLF) (BULLETIN
BOARD: HPLF) , a Boston-based biotechnology company developing
proprietary cell-based medical technologies to improve, protect and
save lives, addressing prevalent human health concerns. The terms
of the deal included $450,000 in cash and a five year warrant to
purchase 750,000 shares of HepaLife's common stock. Arbios has
received $250,000 at the closing and will receive an additional
$200,000 on the earlier to occur of; i) the date on which HepaLife,
in the aggregate, raises $4 million of gross proceeds from debt or
equity financings, or ii) the 18-month anniversary of the closing
of this transaction. "The cash proceeds received upon the closing
of this transaction will be used to continue our efforts to obtain
financing or a strategic partnership for SEPET, our liver assist
device, and/or another transaction that will maximize value for our
shareholders," commented Shawn Cain, Interim President and CEO. "We
will be continuing our efforts by reaching out to potential
additional interested parties, however, there can be no assurances
that we will generate any offers, and if offers are obtained, that
they will be deemed acceptable by the Company and its
shareholders." The Company has also entered into a three month
consulting agreement with Shawn Cain, pursuant to which Mr. Cain
will seek to identify and engage prospective purchasers, licensors
and investors and negotiate the terms of any potential
transactions. About Arbios' SEPET(TM) Liver Assist Device The
SEPET(TM) Liver Assist Device is an extracorporeal (outside the
body) liver assist device for blood purification of patients
suffering from cirrhosis due to chronic liver disease and who are
hospitalized with acute complications due to worsening liver
dysfunction and portal hypertension. The SEPET(TM) device is a
sterile, disposable cartridge containing microporous hollow fibers
with proprietary permeability characteristics. When a patient's
blood is passed through these fibers, blood plasma components of
specific molecular weights are expressed through the micropores,
thereby cleansing the blood of harmful impurities (e.g., hepatic
failure toxins as well as various mediators of inflammation and
inhibitors of liver regeneration). These substances would otherwise
progressively accumulate in the patient's bloodstream during liver
failure, causing hypotension, increasing risk of sepsis development
and accelerating damage to the liver, lungs and other organs,
including the brain and kidneys, and suppressing the function and
regeneration of the liver. SEPET(TM) is designed for use with
standard blood dialysis systems available in hospital intensive
care units. According to the American Liver Foundation, liver
disease is among the top seven causes of death in adults in the
United States between the ages of 25 - 64. In fact, one out of
every 10 Americans has some form of liver disease. There is
currently no satisfactory therapy available to treat patients in
liver failure, other than maintenance and monitoring of vital
functions and keeping patients stable through provision of
intravenous fluids and blood products, administration of
antibiotics and support of vital functions, such as respiration.
About Arbios Systems Arbios Systems, Inc. is developing proprietary
medical devices to enhance the survival of millions of patients
each year who experience, or are at risk for, life-threatening
episodes of liver failure. Arbios' SEPET(TM) Liver Assist Device is
a novel blood purification therapy that provides enhanced "liver
dialysis". For more information on the Company, please visit
http://www.arbios.com/. This press release contains forward-looking
statements that involve risks and uncertainties that could cause
actual events or results to differ materially from the events or
results described in the forward-looking statements, including
risks or uncertainties related to the Company's ability to attract
future financing, to enter into strategic partnerships, to dispose
of its remaining assets, or to further develop its SEPET product
and technology. These statements represent the current goals and
judgment of Arbios' management as of this date and are subject to
risks and uncertainties that could adversely affect the Company or
its abilities to achieve its goals. Arbios cautions investors that
there can be no assurance that actual results or business
conditions will not differ materially from those projected or
suggested in such forward-looking statements. Please refer to our
Annual Report on Form 10-KSB for the fiscal year ended December 31,
2007, and to our subsequent Quarterly Reports on Form 10-Q, for a
description of risks that may affect our results or business
conditions. The Company does not undertake any obligation to
publicly release the result of any revisions to such
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events except as required by law. SEPET(TM) is a
trademark of Arbios Systems, Inc. DATASOURCE: Arbios Systems, Inc.
CONTACT: Shawn Cain, Interim President and CEO, +1-626-356-3105, or
Scott Hayashi, Interim CFO, +1-626-356-3105, both of Arbios
Systems, Inc. Web Site: http://www.arbios.com/
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