bioMD makes a bid for Andrew Forest's Allied Medical and Coridon

bioMD (ASX:BOD) has put in an offer to purchase all the shares in the unlisted Allied Medical, a company that owns Coridon, which is developing DNA vaccines under the leadership of Professor Ian Frazer.

The offer is subject to acceptance by greater than 90 per cent of the Allied Medical shareholders as well as bioMD shareholders.

Allied Medical's major shareholder is Andrew Forrest, who took a controlling interest in Coridon mid last year.

If the acquisition is approved, bioMD will issue 4.3 million shares to Allied shareholders, leaving Allied shareholders with 70 per cent of the issued capital of the combined group.

The transaction will create a diversified healthcare group focused on a growing distribution business and the commercialisation of new medical technologies.

Allied Medical currently has on issue 1,675,000 options which are held by directors and executives. It will be a term of the bid that bioMD acquires those options in exchange for the issue of 53.6 million options exercisable at 6 cents each within 5 years of the date of issue.

In addition, bioMD will be issuing a further 13.4 million options to its existing directors and advisors, subject to shareholder approval, and exercisable at 6 cents each within 5 years of the date of issue.

bioMD as at 31 December 2010 has unaudited net assets of $816,000 comprising, current assets of $762,000 and non-current assets of $53,000.

Allied Medical as at 31 December 2010 has unaudited net assets of $4,805,128, including those of its wholly owned subsidiary.