Warnex Enters Into Agreement in Principle for the Acquisition of Molecular World Inc
News Jun 04, 2009
Warnex Inc. has announced that it has entered into an agreement in principle for the acquisition of Molecular World Inc., a laboratory located in Thunder Bay, Ontario, specialized in human DNA identification including forensic DNA testing.
The purchase price will be paid by the issuance of 2,000,000 common shares of Warnex. Through the acquisition of this new subsidiary, Warnex would also assume approximately $350,000 of debt.
The transaction is subject to certain conditions, namely, the conclusion of all related agreements and the relevant regulatory authorizations, and is expected to close within the next weeks.
"The acquisition of Molecular World will expand Warnex's DNA identification services, particularly in the forensic testing field, and provide us with a unique expertise. Molecular World is the only private laboratory in Canada providing STR, Y-STR, miniSTR, and mitochondrial DNA testing services for forensic and parentage testing purposes," said Mark Busgang, President and CEO of Warnex.
"Their facility in Thunder Bay is state-of-the-art and their procedures and personnel meet all standards for judicial review and quality standards such as ISO 17025."
Molecular World offers services in all four DNA technologies required for human identification: autosomal nuclear (STR), miniSTR, Y-STR and mitochondrial DNA. Mitochondrial DNA testing is crucial in cases where nuclear DNA testing is not possible such as shed hairs at crime scenes, identification of missing persons (skeletal remains with degraded DNA), and when there is insufficient nuclear DNA.
Molecular World has the contamination control facilities to perform mitochondrial DNA testing, which is sensitive to contamination. Molecular World is also accredited by the Standards Council of Canada (SCC) as a DNA testing laboratory for forensics, parentage and other familial relationships.