Dyadic Increases Ownership in Its Asian Subsidiary to 100%
May 04 2006 - 3:01PM
Business Wire
Dyadic International, Inc. (AMEX:DIL), a global biotechnology
company (the "Company"), with subsidiaries in Hong Kong and
mainland China, Poland, and The Netherlands, announced today that
on April 28, 2006, it purchased the remaining 17.5% of shares held
by two minority shareholders of its Asian subsidiary, giving it
100% ownership. The Asian subsidiary is located in Hong Kong and
mainland China, and serves as a distributor of Dyadic's products to
the Far East region. The minority shareholders received $375,000 in
cash and 212,501 shares of unregistered and restricted Dyadic
common stock in consideration for: -- the transfer of all of the
minority shareholders' shares (representing 17.5% of the Asian
subsidiary's outstanding shares) to the Company, bringing the
Company's ownership in the Asian subsidiary to 100%; -- a release
of the Company from, among other things, the potential $405,000
contingent obligation to one of the minority shareholders incident
to the Company's purchase of its initial majority interest in the
Asian subsidiary in 1998; and -- the cancellation of all
indebtedness of the Asian subsidiary to the minority shareholders
in the aggregate amount of $241,854. Mark Emalfarb, Dyadic's
Chairman and CEO, commented, "Our Asian subsidiary has been an
important part of Dyadic's global business for a number of years,
and has ably served as our gateway to the Far East. The Asian
subsidiary team, now 74 people strong, provided approximately 40%
of our 2005 revenues and has done a particularly outstanding job in
helping us to establish a toe-hold in the pulp & paper industry
in the Far East. We are excited about future growth opportunities
in the Asian pulp & paper industry and in other areas, such as
energy. Asia is a growing economy which will require significant
amounts of energy, so we see it as a key market for Dyadic." Mr.
Emalfarb continued, "This transaction, along with the recently
announced Debt-for-Equity conversion, significantly simplifies and
streamlines our balance sheet." About Dyadic Dyadic International,
Inc. is engaged in the development, manufacture and sale of
biological products using a number of proprietary fungal strains to
produce enzymes and other biomaterials, principally focused on a
system for protein production based on the patented Chrysosporium
lucknowense fungus, known as C1. Dyadic currently sells more than
45 liquid and dry enzyme products to more than 200 industrial
customers in approximately 50 countries. Dyadic intends to utilize
its patented enabling and proprietary platform technologies on its
own behalf and under license to business collaborators for the
discovery, development and manufacture of biological products from
genes to produce targeted protein products for diverse markets.
Cautionary Statement for Forward-Looking Statements Certain
statements contained in this press release are "forward-looking
statements." These forward-looking statements involve risks and
uncertainties that could cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. For a discussion of these risks and
uncertainties, please see our filings from time to time with the
Securities and Exchange Commission, which are available free of
charge on the SEC's web site at http://www.sec.gov, including our
Annual Report on Form 10-KSB for the year ended December 31, 2005.
Except as required by law, we expressly disclaim any intent or
obligation to update any forward-looking statements.
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