New pact brings in funds for Ambri

Biosensor company Ambri will receive an injection of up to $15.7 million under an equity and technology licensing pact with Dow Corning Corp and diversified US biotech Genencor International.

The two US heavyweights have agreed to acquire $5.3 million worth of shares in ASX-listed Ambri plus options for up to another $9.6 million of Ambri stock over the next 27 months.

In return, a Dow Corning-Genencor joint venture will gain exclusive worldwide rights to Ambri's advanced membrane technology in markets outside Ambri's core area of professional human healthcare.

The R&D agreement will enable Ambri, Dow Corning, and Genencor to combine their backgrounds and expertise in the fields of biomembranes, silicon-based materials, and biotechnology to develop advanced technologies and products, according to a company statement.

A related licensing agreement will yield an initial upfront payment of about $1.8 million for Ambri and generate royalties on products created from the technology.

If Dow Corning and Genencor take up all the options on offer, they will end up with 12 per cent of Ambri.

Their funding injection will be used for continued development and commercialisation of Ambri's technology and will further improve the company's already cashed-up position.

Last March, Ambri raised $11 million from institutional investors.

The company is based on biosensor membrane technology which translates biological events into digital impulses. Its core products are aimed at areas in which critical healthcare situations require fast diagnoses, such as hospital emergency units.