KANE BIOTECH INC. Kane Biotech Inc. ('Kane Biotech') announced that it has entered into an agreement with Animalcare Group PLC, under which the parties will form STEM Animal Health Inc. The agreement will see Animalcare commercialize Kane Biotech's range of oral care products for companion animals in European and Asian markets and collaborate with Kane Biotech on the development of new biofilm treatments for animals. Under the terms of the agreement, Kane Biotech will create a new subsidiary, STEM, in which Animalcare will invest $3 million in installments over a period of 48 months to acquire, on entering into the agreement, a one-third plus one share equity interest. STEM will be established with a global license over Kane Biotech's existing range of animal health oral care products and in collaboration with Animalcare will also focus on the research and development of novel animal treatments based on biofilm targeting technology.
Animalcare will have licensing rights over future STEM products in Europe and Asia and the option, for a period of six years, to acquire an additional one-sixth stake in the subsidiary for $4 million, payable to Kane. STEM is designed to be self-financing from day one and will benefit from revenues already being generated in the US, Canada and South America as well as from Europe and Asia.
