Principal signs R&D deal with University of Oxford

Executive Summary

• Principal Technologies Inc. entered into a research and development agreement with the University of Oxford to develop and test its thermal sensor technology for medical applications, including cancer diagnosis and treatment.
• The company announced the divestiture of its majority stake (reducing ownership from 80% to 20%) in its Austrian subsidiary, E&E CRO Consulting GmbH, to the subsidiary's management for nominal value.
• The divestiture is subject to corporate and regulatory approvals, including acceptance by the TSX Venture Exchange.

Key Details

• R&D Agreement: Principal Technologies has entered into an agreement with the University of Oxford to develop and test the thermal sensor, which is the subject of the company's long-term license with the university.
• Applications: The development focuses on at least seven proposed medical applications of the Oxford proprietary heat-sensing technology, with a main focus on cancer diagnosis and treatment.
• Divestiture Structure: Principal Technologies is reducing its stake in E&E CRO Consulting GmbH from 80% to 20%.
• Transaction Consideration: The remaining shares are being sold to the management of E&E CRO for their nominal value.
• Rationale: The decision follows a review of operations and an increasing focus on the company's own research and development activities.
• Subsidiary Role: E&E CRO advises healthcare companies on how to efficiently conduct clinical studies.
• Conditions Precedent: Completion of the E&E CRO disposition is subject to the receipt of all requisite corporate and regulatory approvals, including acceptance of the TSX Venture Exchange.

Notable Quotes

• "We are excited about the development phase of the thermal sensor," said Principal chief executive officer Jerry Trent. "There are at least seven proposed medical applications of the Oxford proprietary heat-sensing technology and the successful development of these applications has become a main focus of our organization going forward."