Bone to become subsidiary of Bone Medical

Perth-based Bone Medical (ASX:BNE) has signed a share purchase agreement with UK R&D company Proxima Concepts to acquire 100 per cent control of British biopharma firm Bone -- the company that holds the licenses to Bone Medical's platform technologies.

Bone was incorporated in 2002, taking over work which had been underway at Proxima, which was Bone's major shareholder at the time. Bone Medical backdoor listed on the ASX in 2004, and issued 34 million shares to Bone vendors in payment for 80 per cent of the British companies' ordinary shares as well as all of its preference shares.

Bone will become a wholly-owned subsidiary of Bone Medical with Proxima transferring its remaining 20 per cent holding for no consideration. A prior agreement would have required a payment by Bone Medical of $5 million and 10 million common shares to Proxima.

Bone Medical has also appointed Bio-IB to provide strategic and corporate advice and to assist with a potential capital raising in the US.