WILMINGTON, Mass.--(BUSINESS WIRE)--AdvanSource Biomaterials Corporation (OTC: ASNB), a materials technology company specializing in medical grade polymers for long and short term applications, announced today that it has entered into a definitive Asset Purchase Agreement with Mitsubishi Chemical Performance Polymers, Inc. (“Mitsubishi Chemical Performance Polymers” or “MCPP”), a subsidiary of Mitsubishi Chemical America, Inc. and its shareholder, Mitsubishi Chemical Corporation, to sell substantially all of its assets to Mitsubishi Chemical Performance Polymers for a price of $7.25 million in cash.
“This transaction offers our shareholders a meaningful premium,” said Michael Adams, CEO of AdvanSource. “We are confident that Mitsubishi Chemical Performance Polymers will expand the solutions and capabilities offered to AdvanSource’s customers while maintaining the service they have come to expect.”
“The joining of AdvanSource and Mitsubishi Chemical Performance Polymers provides an excellent pathway for Mitsubishi Chemical Performance Polymers to accelerate its product development efforts and penetration into the specialty medical resins market segment,” stated Steve Gregory, President of Mitsubishi Chemical Performance Polymers. “We are excited about the possibilities this transaction will provide for Mitsubishi Chemical Performance Polymers and the medical market as it leverages core strengths of both companies and is strategically aligned to our objective to be one of the world’s leaders in medical specialty materials solutions.”
The Transaction is subject to the satisfaction or waiver of customary closing conditions, including approval by AdvanSource’s stockholders. The Transaction has been approved by the Board of Directors of both companies and is not subject to any financing conditions. The Transaction is expected to close in the first quarter of 2020. AdvanSource will continue to operate its business in the ordinary course until the Transaction closes.
The description of the Transaction contained herein is only a summary and is qualified in its entirety by reference to the definitive Asset Purchase Agreement relating to the Transaction, a copy of which will be filed by AdvanSource with the Securities and Exchange Commission (the "SEC") as an exhibit to a Current Report on Form 8-K.
AdvanSource estimates that the cash value per stockholder should be approximately $0.20 per share, a 43% premium over the Company’s average closing price during the 90 trading days ending November 22, 2019.
About AdvanSource
AdvanSource develops advanced polymer materials which provide critical characteristics in the design and development of medical devices. Its biomaterials are used in devices that are designed for treating a broad range of anatomical sites and disease states. Its business model leverages proprietary materials science technology and manufacturing expertise in order to expand product sales and royalty and license fee income.
AdvanSource’s technology, notably products such as ChronoFlex®, HydroMed™, and HydroThane™, have been developed to overcome a wide range of design and functional challenges, such as the need for dimensional stability, ease of manufacture and demanding physical properties to overcoming environmental stress cracking and providing heightened lubricity for ease of insertion. AdvanSource’s new product extensions customize proprietary polymers for specific customer applications in a wide range of device categories.
About Mitsubishi Chemical Performance Polymers
Mitsubishi Chemical Performance Polymers, Inc. is a specialty chemical company and direct subsidiary of Mitsubishi Chemical America, Inc., the regional headquarters in North America of Mitsubishi Chemical Corporation. The Mitsubishi Chemical Corporation group of companies operates over 350 affiliates in more than 30 countries, with annual revenue in excess of $24 billion. Leveraging its affiliates’ manufacturing capabilities and expertise in R&D, sales, and marketing, MCPP seeks to innovate in compounding polymerization and polymer modification technologies for the 21st century, with a view towards sustainability practices in a circular economy.
