Altachem Pharma Ltd. completes collapse of a Chinese subsidiary
Altachem Pharma Ltd. announced that it has received notification that all of the necessary approvals have been received from the Chinese government to collapse the Company's wholly-owned subsidiary, Shanghai Altachem Pharma biotechnology Ltd ("SACP") and to repatriate all assets back to Canada.
"This is an important milestone for Altachem," said Dr. David Cox, President and CEO "and fully consistent with our strategic re-positioning announced earlier this year. We can now transfer all of SACP's assets to Altachem at our convenience, including more than one million dollars (US) held in SACP's bank account. This will of course considerably augment our working capital."
SACP is one of two companies in China that are wholly-owned by Altachem. Although it has not been an operating company for some time, it nevertheless owned various intellectual property assets as well as its cash deposits which until now could not readily be used outside of China. These assets include worldwide rights to the Bionex family of disinfectants, Chinese rights to ACP-HIP (an investigational drug for Kaposi's sarcoma) and Sonolight technology for blood safety applications. These assets can now be used to generate revenue through licensing or sale. Altachem's other business in China, Shanghai Hua Gao Pharmaceutical Pellet Core Company Ltd. is an operating business and is presently for sale. The Company anticipates completing the sale of this business by year end.
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