Applied Microbiology, Nippon Shoji Kaisha Ltd. deal

The companies agreed to develop AMBI’s nisin antimicrobial peptide to treat hospital-acquired infections and infections of the colon on an exclusive basis in Japan, certain Asian countries, Australia and New Zealand. Nippon purchased $2 million of AMBI common shares at $6.34 per share for a 1.7 percent equity position.

The Japanese company also made a $2 million loan available to AMBI and will pay R&D payments and royalties. AMBI can repay the loan in common stock valued at market price at the time of repayment. AMBI also issued warrants to Nippon to purchase 315,000 AMBI common shares. ...