NEWS -- Boston Therapeutics Announces Letter of Intent to Acquire Pennsylvania-based Medical Technology Associates II (MTA2)
LAWRENCE, Mass., April 12, 2018 (GLOBE NEWSWIRE) -- Boston Therapeutics Inc. (the “Company” or “BTI”) (BTHE) is pleased to announce that it has entered into a non-binding letter of intent dated April 11, 2018 (the “Letter of Intent”) with the shareholders of Medical Technology Associates II, Inc. (“MTA”), a related party, to acquire MTA, a privately-held company dedicated to the development of novel biopharmaceuticals through its proprietary ALTAPURE™ technology. ALTAPURE™ technology is a proprietary process for purification and stabilization applied to purify biological extractions, e.g. blood products (animal), pituitary gland, pancreas and botanicals, specialty proteins, creating molecules of enhanced purity (quality) for biopharmaceutical development and volume for commercialization (quantity in kilograms).
MTA is building staff and has affiliated operations in Beijing, Qingdao and Changchun, China and has established collaborations in the US through its affiliates in both New Hampshire and Pennsylvania. MTA’s first pipeline investigational product, OXG001, has completed product and process development phases and is under review for registrations in US, EU and China. MTA products are aligned with Boston Therapeutics new strategy to become a world leader discovery, development and manufacture of products that transform current medical practices.
Conroy Cheng, BTI Board member and primary investor in BTI notes: “…MTA advanced pipeline and technology platform is an opportunity to expand globally and to add significant value and financial support for our existing operations, business partners, and to include additional near term revenue generation for both companies.“ The Technology:
The MTA investigative materials, developed through the ALTAPURE technology, are protein based iron and oxygen carriers that have unique perfusion characteristics since they are 1/1000th the size of the gold standard for perfusion, the red blood cell. OXG001 is a stabilized hemoglobin polymer, a very small but efficient red blood cell derived oxygen carrier. This novel material is designed to be stabilized and packaged for long shelf live (3-5 years) at room temperature and is believed to be suitable for all mammalian species so there is no need for blood logistics in many varied applications from organ transplant maintenance to human acute trauma. The small size enables OXG001 to supply oxygen in cases of major blood vessel occlusion, constriction or low flow blood pressure environments and may have benefits in traumatic brain injury and the management of hemorrhagic shock and blood loss irrespective of location globally. It is intended to be a low viscosity IV infusion that we believe will provide better circulation and better perfusion at low pressures, as experienced in organ transplants and even expanded to the use and healthcare management for the veterinary health. The Addressable Market and Approval Strategy:
OXG001, in the very short term, may be applied to organ transplant procedures and the treatment of Chronic Anemia. As an iron supplement, OXG001 can deliver highly available iron for patients suffering from dysmehorrhea, ulcerative colitis and renal dialysis.
In the longer term, OXG derivatives may impact outcomes in both planned and traumatic emergent surgical procedures, when ischemia and reperfusion injury is the enemy of good outcomes. A formulation of OXG001 has been previously approved in the US, Russia, South Africa, and the EU under the prior unique production process. Regulatory processes that yield new material produced by the ALTAPURE technology are being submitted for approval this year in these countries, as well as in China. Two short-term paths to commercialization for Veterinary applications are also currently in preparation. Strategic Rationale:
BTI diabetes and metabolic syndrome compounds are designed to stave off the progression of diabetes in those with prediabetes and metabolic syndrome, and reverse the trajectory toward the need for insulin in patients already suffering from type 2 diabetes. The need for transplants, renal dialysis, and poor vascular perfusion are all complications of diabetes. However, the synergies go beyond this commonality and extend to the ALTAPURE platform itself. This highly sophisticated, large-scale process can be used in the manufacture of both plant based carbohydrate therapeutic products and peptide therapeutic purifications. We anticipate using the MTA processes for future biologics drug discovery and development at BTI. Financial Position:
The acquisition of MTA will be executed as a share exchange whereby the MTA shareholders will exchange 100% of the outstanding securities of MTA for common stock of BTI shares in a tax-free exchange. Additional shares may be earned through specified development and commercial milestones. In addition to exclusive rights to the MTA intellectual property portfolio, know-how and product pipeline, MTA has approximately $6.5 million USD on the balance sheet and an additional $11M in grants and foreign investment capital to be incorporated during the next 18 months into the combined operations of MTA and BTI as the merged entity.
Completion of the transaction contemplated in the Letter of Intent is subject to customary conditions for this type of transaction, including satisfactory due diligence investigation, successful completion of an audit on the financial statements of MTA, approval of the Board of Directors of both parties and the shareholders of MTA, and all requisite regulatory and any other required approvals. There is no guarantee that all or any of these conditions will be satisfied. There can be no guarantee that the proposed acquisition of MTA will be completed, or that it will be completed as currently proposed, or at any particular time.
Conroy Cheng and Carl Rausch, officers, directors and/or significant shareholders of BTI, are officers and/or directors of MTA as well as the sole shareholders of MTA. As a result, the acquisition of MTA, if consummated, will be considered a related party transaction. Messrs Rausch and Cheng will recuse themselves from any vote relating to this matter by the BTI Board of Directors. About Boston Therapeutics, Inc. http://www.bostonti.com
Boston Therapeutics, headquartered in Lawrence, MA (BTHE) and with an office in Albuquerque, NM is an innovator in design, development and commercialization of compounds to treat diabetes and diabetes related complications. Forward Looking Statement
This press release includes forward-looking statements. These statements may be identified by words such as "feel," "believes," expects," "estimates," "projects," "intends," "should," "is to be," or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ materially include, but are not limited to: our limited operations and need to expand in the near future; risks associated with obtaining regulatory approval of our products; the ability to protect our intellectual property; the potential lack of market acceptance of our products; potential competition; our inability to retain key members of our management team; our inability to raise additional capital to fund our operations and business plan; our ability to continue as a going concern; our inability to close and integrate acquisitions; our liquidity and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K filed with the SEC. Boston Therapeutics expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law. Contact:
Boston Therapeutics, Inc.
Loraine Upham, COO
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