Under the terms of the agreement, Biowell will transfer ownership of all of its intellectual property to a subsidiary that will then be acquired by a wholly owned subsidiary of Applied DNA Sciences. In exchange, Biowell shareholders will receive shares of Applied DNA Sciences' common stock. The closing of the acquisition is conditioned on the fulfillment of certain conditions by both parties.
Upon closing, Chairman and CEO of Biowell, Dr. Sheu, a distinguished molecular biologist who pioneered the DNA technology, will join the Board of Directors of Applied DNA Sciences and relocate to California with other key employees of Biowell to establish a DNA laboratory. Dr Sheu conducted 10 years of research and invested significant capital in R&D to develop the DNA technologies that constitute the intellectual property being acquired by Applied DNA Sciences.
Dr. Sheu stated, "I am very pleased that my biotechnology research in DNA has found the perfect home. Applied DNA Sciences is a company that has management with the vision and expertise to bring the technology into many areas of government applications and global commerce, where it can flourish."
Peter Brocklesby, president of Applied DNA Sciences, stated, "The acquisition is strategically important as it delivers global control of the DNA security technology to Applied DNA Sciences. Transferring the technology to a U.S. corporation provides us the ability to deliver advanced security solutions to U.S. and foreign governments and international corporations. Having the DNA security solution produced within the U.S. borders by an American company in its own laboratories removes the natural reluctance of government and major corporations regarding dependency upon foreign technology for the provision of critically important security protection."
Botanical DNA technology is a leading provider of brand protection and anti-counterfeiting since it is based on identification of the encoded DNA in a product through forensic analysis -- a scientific proof of authenticity. Applied DNA Sciences DNA technology protects products and brands, deters counterfeit and grey market activity and safeguards corporate investment and market share. Microscopic covert and overt DNA markers can be integrated into products and packaging in inks, paper, coatings, adhesives, thread, textiles, polymers, liquids, holograms and microchips.
ADNAS recently announced a joint-venture agreement develop and market state-of-the-art DNA-embedded holograms with Holomex, one of the world's largest manufacturers of security holograms. The incorporation of botanical DNA in a hologram elevates its level of security and reliability.
About Applied DNA Sciences, Inc.
Applied DNA Sciences, Inc. provides proprietary DNA-embedded security solutions, using plant DNA, to verify authenticity and protect corporate and government agencies from counterfeiting, fraud, piracy, product diversion, identity theft and unauthorized intrusion into physical plant and databases. Biowell Technology, Inc. of Taiwan technology is protected by over 20 international patents. (http://www.biowell.com.tw/en). Applied DNA Sciences, Inc., 9229 West Sunset Boulevard Los Angeles, CA 90069; Tel: 310-860-1362; Fax: 310-860-1303. www.ADNAS.com.
Except for historical information contained herein, the matters set forth in this press release, such as statements relating to the Company's ability to drive technological developments and the acceptance and timing of product introductions, are forward-looking statements that are subject to risks and uncertainties, including timely development and acceptance of new products, the impact of competitive products and pricing, the timely development and release of products by suppliers, and other risks detailed in the Company's periodic filings as filed with the SEC.