Trading in Life Science Developments' shares has been suspended on AIM after it signed a non-binding term sheet to acquire The Diabetic Boot Company Limited for new shares in LIFE.
The acquisition would, if completed, amount to a reverse takeover under AIM Rules.
DBC, founded in 2010 with the HQ in Buckinghamshire and an office in Ohio, US, is a medical appliances manufacturer, producing patented wearable technology for the treatment of diabetic foot ulcers under the PulseFlowDF brand.
As a precursor to the acquisition, the company has also agreed to provide DBC with a short-term loan of £200,000 for working capital purposes to be drawn down in two tranches, with £78,000 being drawn down immediately and the balance available subject to certain conditions being satisfied by DBC over the next 7 days.
The loan will pay a coupon of 7%, is unsecured and is fully repayable on the earlier of 31 March or the date on which DBC secures additional equity funding of £1,000,000.
At 8:46am: (LON:LIFE) Life Science Developments Ltd share price was 0p at 2.38p