SOURCE: Oncologix Tech Inc.

August 18, 2008 10:32 ET

Oncologix Announces Signing of Asset Purchase Agreement Pertaining to Selling Its Oncosphere Assets

GRAND RAPIDS, MI--(Marketwire - August 18, 2008) - Oncologix Tech Inc. (OTCBB: OCLG) announced today the signing of an Asset Purchase Agreement with Institut für Umwelttechnologien GmbH, a German company ("IUT") of Berlin, Germany, under which Oncologix is to sell all of the assets pertaining to its Oncosphere product to a newly organized subsidiary of IUT called "IUT Medical, GmbH" ("IUTM"). The agreement is subject to the approval of the Oncologix shareholders and to the agreement of the University of Maryland to certain changes in the Master License Agreement whereunder the University licenses the technology underlying the Oncosphere product.

In making the announcement, Ms. Judy Lindstrom, the Oncologix Chief Executive Officer, said, "We are of course delighted at having entered into this agreement with our friends at IUT and look forward to a profitable continuing relationship. We are optimistic of obtaining the necessary approvals of our shareholders and the University of Maryland."

The terms of the Agreement provide generally for the transfer to IUTM of all the Oncosphere-related assets of Oncologix and the assumption by IUT of all of the liabilities of Oncologix that are related to its Oncosphere development effort. In exchange, Oncologix is to receive a cash payment at the Closing of $50,000, a 20% equity interest in IUTM and royalty payments based on the future revenue of IUTM.

Full details of the Agreement will be contained in a Proxy Statement to be prepared by Oncologix in connection with its request for shareholder approval.

Also, according to Ms. Lindstrom, "While still on an informal basis, we have agreed with IUT to enter into discussions with a view to having IUTM grant marketing rights to Oncologix for the Oncosphere and possibly other IUTM products in consideration of reducing or even possibly eliminating our rights to royalties. While there is nothing definite at this point, we believe that having marketing rights would be a very substantial benefit to Oncologix and its shareholders."

About Oncologix Tech Inc. and its subsidiary, Oncologix Corporation.:

Oncologix Tech Inc. (formerly BestNet Communications Corp.) was formerly a provider of long distance telephone communication services but disposed of that business in January 2007.

The Company was developing a brachytherapy (radiation therapy) device, the Oncosphere System, for the advanced medical treatment of soft tissue cancers until it suspended operations at the end of December 2007 because of financial difficulties. It is based on radioactive microparticles designed to deliver therapeutic radiation directly to a tumor site by introducing the microparticles into the artery that feeds the tumor tissue.

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created thereby. These statements include the plans and objectives of management for future operations, including plans and objectives. The forward-looking statements herein are based on current expectations that involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond control of the company. Although the company believes that the assumptions underlying the forward-looking statements are reasonable, any one of the assumptions could be inaccurate and, therefore, can be no assurance that the forward-looking statements included in this release will prove to be accurate.

About IUT

IUT was founded in Germany in 1992 by a group of scientists. It is located in the Berlin area and is concentrated on manufacturing special analytic devices and advanced technology developments, with a focus on environmental technology, and manufacturing of radioisotopes and radio labeled compounds. IUT maintains a website at http://www.iut-berlin.info/8.0.html?&L=1.

Contact Information

  • Contacts:
    Michael Kramarz
    Chief Financial Officer
    Tel: (616) 977-9933