Prima to gain full ownership of its four subsidiaries

Prima Biomed (ASX:PRR) and the Austin Research Institute (ARI) have reached an in principle agreement enabling Prima to gain full ownership of its four subsidiary companies, Oncomab, Panvax, Cancer Vac and Arthron.

Formal legal documentation is expected to be finalised and signed by both parties by the end of August.

The in-principle agreement proposes that Prima will:

• Acquire ARI's shareholdings in the four subsidiary companies for nearly 14 million ordinary shares in Prima.
• Offer to acquire ARI associated parties' share and option holdings in Arthron for just over 1 million shares in Prima.

Prima will also offer to acquire all other shares in Arthron and all outstanding options issued by two other subsidiaries, Panvax and Cancer Vac, for a total of approximately 1.4 million Prima shares.

A total of nearly 2.5 million shares will be offered under a prospectus to ARI associated parties for their Arthron shares and options, Panvax and CancerVac option holders, and the holders of remaining Arthron shares.

If all of these offers are accepted, Prima will hold all the issued shares and options of all four subsidiaries.

The issue of shares will give ARI a shareholding in Prima of close to 10 per cent. Through its commercial vehicle Ilexus, ARI currently owns between 7-15 per cent of the issued shares of each Prima subsidiary company.

"Through the implementation of the agreement reached with ARI, Prima will have much greater control and flexibility over the future direction of its subsidiaries as well as over its own strategic direction, whilst ARI will have increased flexibility by taking shares in a listed entity," said Prima executive chairman Eugene Kopp.