Bio-GAL Ltd., XTL deal

XTL acquired from Bio-GAL exclusive, worldwide rights to a patent covering the use of recombinant erythropoietin for multiple myeloma (MM) in exchange for about a 50% ownership stake in XTL. Based on XTL's March 17 market cap of $2 million, the day before the deal was announced, the ownership stake is worth about $1 million. Bio-GAL also is eligible for a $10 million milestone payment upon completion of a Phase II trial for MM, which XTL hopes to start this year after raising money. Bio-GAL also is eligible for 1% royalties. The deal is expected to close in 2Q or 3Q09. At June 30, 2008, XTL had $8.3 million in cash and a six-month operating loss of $7.3 million. ...