July 20, 2007

Australia's Stirling to acquire Canadian biotech firm

Australian animal health company Stirling Products Ltd is set to take over Canada-based Progressive BioActives Incorporated (PBI) for US$856,000 and 1.6 million shares.

The agreement is subject to Stirling shareholder approval, with a general meeting to be held on August 22.

Company executives said the completion of the transaction will be voted on by the Stirling shareholders at a general meeting scheduled on August 22.

In February, Stirling announced that it had signed a Memorandum of Understanding with PBI to explore strategic synergies between the two companies. Two months after, Stirling announced that it had signed a term sheet with PBI to acquire its total share holding.

The acquisition will have the opportunity to advance Stirling's R-salbutamol technologies in North America utilizing the PBI resources in Canada, according to Stirling official Calvin London. London said the venture will also strengthen Stirling's presence on the international feed additive front.

Shareholders will be asked to ratify the acquisition at the General Meeting ahead of the intended closing of the deal which will occur in Charlottetown, Prince Edward Island on or about 28 August, 2007.