Following news of its asset purchase deal with Seventh Wave Laboratories – a consulting-based contract research organization (CRO) – Bioanalytical Systems (BASi) shares were up approximately 34%.
As per the asset purchase agreement (APA), Maryland Heights, MO-based Seventh Wave Laboratories received 1,500,000 Common Shares of BASi and approximately $7m in cash in exchange for its assets.
“We are all excited to have the APA complete and begin the integration process,” said Jill Blumhoff, CFO of BASi, a CRO based West Lafayette, IN. “We believe that our service offerings complement each other well and that we can leverage the scientific expertise of each company to achieve future growth.”
According to the SEC filing, BASi will lease “certain premises” in Maryland Heights, MO owned by SWL Properties LLC, an entity controlled by certain members of Seventh Wave Laboratories, including John Sagartz, Seventh Wave Laboratories’ president and CEO – who has joined the BASi Board of Directors as of today.
Under the lease arrangements, BASi has agreed to lease the premises for approximately seven years. The agreement will automatically extend for an additional two seven-year terms unless terminated.
Annual rent ranges from $390,000 for the first year to $440,987 for the seventh year, according to the filing.