Consegna (ASX: CGP) continues to validate the potential to bring the Aspen Medisys nanoparticle thermotherapy platform to market with expressions of interest from Europe-based parties wanting to commercialise the technology.
As a result, the company has extended the period of evaluation of Aspen Medisys 29 October 2012 to pursue the expressions of interest received.
Consegna acquired Aspen Medisys in December 2011 and its nano-particle thermotherapy platform technology, which has shown promise as a new treatment for cancer.
Fabio Pannuti, chief executive officer of Conesgna, commented on the strategic move: "Consegna has undertaken a significant amount of work to validate the potential of Aspen's technology and develop a clear path to monetize this asset for the benefit of our shareholders.
"There is growing interest in the nanotechnology and heat delivery therapies and our proprietary platform is an attractive asset for those seeking to build a franchise in this area of cancer treatment.
"Driven primarily by our European based Board Member, Lord Simon Reading, we have built relationships with such parties and are making sound progress with commercial discussions that we believe will deliver a great outcome for shareholders."
Under the terms of the acquisition agreement for Aspen Medisys, Consegna had a period of six months to evaluate the technology.
The vendors have accepted the four month extension, with a further nominal deposit payment in scrip of $141,000 and the balance of shares from the December agreement payable should Consegna agree to complete the acquisition of the asset.
Strong patent position
Adding further to the commercialisation potential of the Aspen Medisys technology, a key patent has been granted by the Canadian Patent Office.
Dr Nick Ede, chief technical officer of Consegna, said the new patent is a major asset that confers certainty and significantly increases the commercial value of the Aspen thermotherapy platform technology.
"Maintaining commercial exclusivity for our nanoparticle thermotherapy platform through a robust international patent portfolio is fundamental to our commercial strategy."
Aspen Medisys commercialisation
Consegna is rapidly progressing the commercialisation of its Aspen Medisys technology, with animal studies underway at Dartmouth Medical School and the University of California Davis.
Aspen Medisys has important applications in the oncology field, centring on the use of heated nanoparticles to treat tumours.
Consegna plans to spin out the Aspen Medisys technology into a new company and was originally planning to list the entity on the ASX no later than the December quarter of 2012.
This is one of a number of proposed divestments which will net shareholders new shares in each of the proposed new listings.
The spin out of Aspen Medisys is expected to raise the necessary capital to progress the development and eventual commercialisation of the platform technology, removing the financial and dilutive effect on shareholders.
Pannuti told Proactive Investors in April Consegna hopes to have Aspen Medisys units operating and earning money in markets around the world by the December quarter of 2013.
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