January 7, 2011

  

Microbix CEO sells shares to invest in China vaccine joint venture

 

Microbix Biosystems Inc., a biotechnology company commercialising novel biological technologies for human healthcare and livestock management, in addition to a core business of virology products, reported that William J. Gastle, Chairman and Chief Executive Officer, sold 250,700 of Microbix common shares at CAD0.405 (US$0.407).

 

The full proceeds of Gastle's sale of Microbix stock was re-invested in Crucible International Biotechnologies Corp., Microbix' majority owned subsidiary that is investing directly in the influenza manufacturing joint venture in China.  The transaction was part of the recent financing for Crucible. 

 

In December, Microbix completed the private placement financing of Crucible, which was over-subscribed, attracting worldwide investors and company management. Microbix owns approximately 80% of Crucible.  The financing gives Crucible a valuation of CAD14 million.

 

"It was important to demonstrate my confidence in the joint venture's success to other Crucible investors and to shareholders of Microbix.  I am pleased that other Microbix directors and management have also invested directly in Crucible," Gastle said. 

 

The establishment of Crucible and the successful start-up financing is a major milestone for the Hunan joint venture and for Microbix and its shareholders. Hunan and Crucible are now moving forward to form the joint venture company which will build and operate Asia's largest vaccine facility which will be based in Changsha and will be 50% owned by Hunan and Crucible.