Elan, Life Medical deal

The companies signed a letter of intent under which ELN would have an option to form a joint venture to develop and market CHAI's Cariel wound dressing after the product successfully completes clinical trials. CHAI would transfer the product to the joint venture in exchange for a $6 million payment from ELN. CHAI also would issue an option to ELN to buy 600,000 shares of CHAI at 130 percent of the then current market price. Funding for the joint venture would be shared equally and each company would retain a 50 percent equity interest. ...