TORONTO: ScreenPro Security Inc. (CSE: SCRN) has entered into a Share Exchange Agreement in connection with the proposed acquisition of Add Biomedical Inc., a biomedical screening company with the initial focus on breast cancer screening and detection.
Lena Kozovski, ScreenPro CEO said, “Add Biomedical is a strategic acquisition and expands ScreenPro’s offerings into the screening/detection industry.
In addition, Add Biomedical is financially secure with over $1.0 million in cash to help its operations. Further, the working capital infusion will also aid the company in expediting its expansion and growth plans for this year.
The ability to use Add Biomedical’s technology in other industries like animal healthcare represents a large opportunity for ScreenPro and its shareholders. We are excited about the addition of Add Biomedical.”
ScreenPro will acquire 100% of issued and outstanding shares of Add Biomedical, an arm’s length privately held company.
One of Add Biomedical preeminent products is an at-home rapid test kit (CA15-3). According to a recent market research report published by The Insight Partners, the global breast cancer screening market is expected to reach $6.2 billion by 2027 from $4.6 billion in 2019; it is estimated to grow at a CAGR of 4.8% from 2020 to 2027.
According to the World Health Organization, the most common type of cancer incident in the US is breast cancer, with approximately 234,087 breast cancer cases and 41,904 deaths in 2018.
Furthermore, the American Cancer Society has estimated that there were approximately 276,480 new cases in the United States for 2020.
The future expansion plans of Add Biomedical into veterinary diagnostics represents another large opportunity as the global veterinary diagnostics market size was valued at USD 4.4 billion in 2018 and is projected to reach USD 9.5 billion by 2026, exhibiting a CAGR of 10.0% during the forecast period.
Add Biomedical is working on full commercialization of its products in North America. With ScreenPro’s strong relationships in the distribution and logistics industry, the commercialization process is expected to be expedited. Further details to be announced at a later date.
The aggregate purchase price of CAD $5 million will be satisfied through the issuance of consideration units (Each Consideration comprising og one common share issued at a deemed price of $0.15, and one common share purchase warrant exercisable at $0.20 for a period of two years from the closing date.