Entest BioMedical Enters Escrow on Potential Acquisition of Veterinary Hospital Located in Southern California
Orange County Based Animal Hospital Expected to Generate Approximately $500,000 in New Revenue for Entest; New Addition Expands Distribution Potential for ImenVaxTM and Future Stem Cell Therapies for Hip Dysplasia
SAN DIEGO, CA--(Marketwire - February 15, 2011) - Entest BioMedical Inc. (OTCBB: ENTB) announced the Company has entered into escrow on the proposed purchase of a veterinary hospital located in Southern California pursuant to a Letter of Intent entered into on February 11, 2011 ("LOI").
Mr. Koos stated, "I'm excited about this potential acquisition. Not only does it represent a second spoke in our distribution wheel for ImenVaxTM and other potential products but we believe it should bring us approximately $500,000 per year in near term revenue. We have already acquired the McDonald Animal Hospital and, once this new acquisition is made, we expect our near term revenue from these two veterinary hospitals to exceed $1.1 million on an annualized basis."
ImenVaxTM is an immuno-therapeutic cancer vaccine for dogs currently under development by Entest. The Company recently announced the initiation of a collaboration with RenovoCyte LLC and Medistem Inc. to explore the development of a stem cell therapy for treating hip dysplasia in dogs.
The transaction contemplated by the LOI is subject to the execution of one or more definitive agreements upon mutually acceptable terms and conditions. The Company plans to acquire several existing veterinary clinics, with the anticipated benefit to the Company being near term cash flow from operations, established for clinical testing facilities and future distribution channels for the Company's products and services.
A Company Spokesperson also noted that Entest has increased the number of veterinarians at the McDonald Animal Hospital ("MAH") located in Santa Barbara, California, and has begun an aggressive marketing campaign in the Santa Barbara area to create public awareness of MAH's involvement with stem cell therapy for animals and immuno-therapeutic cancer vaccines for dogs. Entest acquired the McDonald Animal Hospital on January 4, 2011.
About Entest BioMedical Inc.:
Entest BioMedical Inc. (OTCBB: ENTB) is a developer of veterinary medicines that harness the animal's own reparative / immunological mechanisms. The company's products include an immuno-therapeutic cancer vaccine for canines (ImenVaxTM). The company's immuno-therapeutic cancer vaccine utilizes an encapsulation device as the vaccine delivery system and requires a simple implant procedure.
This news release may contain forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.
Entest BioMedical Inc.
David R. Koos
Chairman & CEO