NEW YORK
Eternity Healthcare (“Eternity” or the “Company”) (OTC: ETAH) has announced its intention to build a cell storage, transformation and application facility in Tongren, Guizhou Province, China. This 50,000-square foot facility will utilize the proprietary biotechnology developed by Shenzhen Zoken Biotechnology Co. LTD.
Eternity is in preliminary negotiations regarding the specific terms of the license, whereby the Company will acquire the exclusive right to use Shenzhen Zoken Biotechnology’s technology for the harvesting, storage, transformation and application of stem cells throughout Guizhou Province. The Company will establish a facility in Tongren for the treatment of clients interested in the benefits of stem cell storage and applications, which will have a fully equipped stem cell laboratory, immune cell research room, and a genetics and gene research laboratory. It is estimated that construction of the facility, including acquisition of the equipment, and initial working capital, will require approximately $20 million. It is anticipated that the funds will be provided by affiliates of one of the Company’s shareholders, pursuant to a long-term loan.
Once completed, the facility will provide its clients with treatments and services, similar to those provided by hospitals which rely upon Shenzhen Zoken Biotechnology to service their clients. Unlike those hospitals, which ship their patients’ stem cells to Shenzhen Zoken Biotechnology for storage and transformation, all work will be done on site at Eternity’s facility.
The Company is currently in negotiations as to the terms of the loan, including interest rate and amortization schedule, the royalty, and other provisions of the license, including the right to use future technologies, and the terms of the lease for the facility.
It is anticipated that the Chinese operating company will be directly owned by a Hong Kong company which, in turn, will be wholly owned by a BVI Company which will be a direct wholly owned subsidiary of the Company. Management of the Company will include individuals experienced in the development of a stem cell harvesting, transformation and storage, transformation and application facility in China.
The organizational structure should be completed by the end of November and the facility in Tongren will be operational by April 2018.
As the terms of all of the relevant documents have yet to be negotiated, there can be no assurance that the Company will be able to establish the anticipated facility or that the relevant economic terms will be advantageous to its shareholders.
ETERNITY HEALTHCARE INC.
Certain matters discussed in this press release are ‘forward-looking statements’ intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company’s statements regarding its intent to develop a stem cell facility and the benefits of such a facility to the public and the Company are subject to numerous risks and uncertainties, including, but not limited to, the timing of the completion of the project, the terms under which the project will be completed, the consumer acceptance of stem cell technologies and whether alternate technologies will displace stem cell technologies. The factors discussed herein and expressed from time to time in the Company’s filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171116005310/en/
CONTACT
Porter, LeVay & Rose
Matthew Abenante, 212-564-4700
matthew@plrinvest.com
