Cardiff International (OTCQB:CDIF) said today that it has agreed to acquire MedicaMetrix as a subsidiary in an all-stock transaction valued at $6 million.
Delaware-based MedicaMetrix has developed a medical device, ProstaMetric, that enables more effective prostate cancer diagnosis and monitoring. The device won CE Mark clearance in the European Union in October last year and has no direct competitor, according to Cardiff.
With the acquisition of $9 million worth of MedicaMetrix assets, Cardiff’s total assets exceed $20 million. The merger is Cardiff’s 1st foray into the medical device field.
“Toward that end, we have already established a sales organization in the Netherlands and are engaged with 16 UK and Dutch institutions who are eager to use ProstaMetric,” MedicaMetrix president, founder & CEO Christopher LaFarge said in prepared remarks. “The company will use the Series B funding to launch the product in the EU, build revenues, and apply to the US FDA 510(k) clearance. We strongly believe that this is a potential blockbuster product.”
“We are pleased to welcome MedicaMetrix to the Cardiff family,” Cardiff president & CEO Alex Cunningham added. “Another partnership that adds to our solid foundation for our investors, while diversifying our revenues streams, improving profitability, and increasing shareholder value. MedicaMetrix founders and senior management believe it’s in their best interest to become part of Cardiff which provides them the financial platform to double their business over the next 12 months projecting revenues close to $7 million.”
LaFarge commented, “We are pleased to be part of the Cardiff family and believe together MedicaMetrix will benefit greatly from this transaction,” LaFarge said.
