To enable the closing of this agreement, IRI will need to restructure.
IRI Separation Technologies entered a letter of intent with Japan-based PharmaFoods International (PFI) to produce antibodies for the helicobacter pylori bacteria and to jointly develop and market an avian influenza antibody in an effort to expand their Asian market. The letter of intent also signs on Sceti K.K. to distribute IRI products in Japan.
For IRI to perform the terms of the Japanese agreement, it is currently negotiating with creditors to restructure existing debt and effect a sale of certain egg-breaking assets, not required in the antibody extraction process, for cash and other considerations.
PFI is offering to supply IRI with its H. Pylori vaccine, from which the Canadian company will produce a 50% pure antibody. PFI believes the IRI product will have a higher assay than is currently available. Currently prescribed antibiotics for the bacteria have a 15% failure rate and may lead to reinfection, says IRI. The firm expects to have a product on the Asian market this year.
The Canadian-Japanese venture will also jointly develop and market avian influenza antibodies, with IRI securing the required eggs from H5N2 vaccinated chickens. PFI proposed a delivery system for the antibodies that will forgo prolonged clinical trials.
As part of IRI’s restructuring, David Mason will step down as director but will continue as the COO. IRI is also negotiating the cancelation of all options to company employees and contractors.
A lawsuit relating to the supply of $150,000 shell eggs to the egg-breaking facility over the four-week period prior to the closure of the facility has been issued against a subsidiary of IRI, which the company anticipates will be resolved during the restructuring.
Additionally, IRI is considering two proposals covering the takeover of the sales and marketing operations.