SDS Announces Signing of Letter of Intent to Merge With Chembio Diagnostic Systems, Inc.
NEW YORK--(BUSINESS WIRE)--Nov. 22, 2000--Saliva Diagnostic Systems, Inc. (OTC: SALV, SALVE)
Leo Ehrlich, President of Saliva Diagnostic Systems, Inc. ("SDS") today announced from the Medica 2000 trade show in Dusseldorf, Germany, the signing of a letter of intent to merge SDS with Chembio Diagnostic Systems, Inc. ("CDS") of Medford, NY. The merger, if approved, will result in SDS stockholders retaining approximately 25% of the combined companies' common stock.
The merger is contingent upon approval by each company's board of directors and stockholders. The merger is further conditioned upon SDS being able to reduce its liabilities to agreed-upon levels.
In the interim, SDS has entered into a manufacturing and supply agreement with CDS to produce its products.
"This merger creates a great opportunity for both companies," commented Mr. Ehrlich. "SDS has developed outstanding technologies but has been unsuccessful in developing efficient manufacturing. This has cost SDS lost sales opportunities and large financial losses. CDS has extensive research, development and manufacturing experience in the rapid test field. Its products cover a range of infectious disease, fertility and veterinary applications. The merger with SDS will enable CDS to market additional products using the SDS patented barrel system."
Information about Chembio can be viewed at www.chembio.com, www.sinovus.com, and www.surecheck.com.
SDS continues to fund its operations by securing loans with convertible debt. To date, conversion of debt to common stock has resulted in the issuance of in excess of ten million shares.
FORWARD-LOOKING STATEMENTS
This release contains forward looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product development and acceptance, manufacturing, competition, regulatory and other factors, which are outside the control of SDS.
CONTACT:
Saliva Diagnostic Systems, Inc.
Mr. Leo Ehrlich, 631/205-0700 |
