Hemosol Inc. deal

HML signed a letter of intent with Fresenius AG (Oberursel, Germany) to develop, produce and market HML’s Hemolink human red blood cell substitute in Europe. Fresenius will pay the Toronto company up to C$39 million, including a C$3.5 million licensing fee upon the execution of definitive agreements, and C$9.5 million in milestones.

Fresenius will purchase, for C$5.6 million, 1 million preference shares of HML, which are convertible into 1 million common shares upon payment of an additional C$5.4 million. Fresenius will purchase an additional 1 million HML shares for C$15 million upon achievement of certain milestones. HML has 11 million shares outstanding prior to the investment. ...