Share prices for Emergency Filtration Products (Pink Sheets: EMFP) jumped 23 percent to 32 cents a share today, thanks to the news that the company recently signed a letter of intent to merge with Applied Nanoscience Inc. (Pink Sheets: APNN).
According to the deal, Applied Nanoscience will issue around 34 million shares of its common stock and 17 million warrants in exchange for the $45 million outstanding shares of Emergency Filtration. At this point, Applied Nanosciences reportedly has $21 million common shares outstanding, and both companies have warrants or options to acquire additional shares outstanding.
As a result of the merger, Emergency Filtration will own approximately 62 percent of the fully merged company – which has yet to be named or assigned a permanent stock symbol – and five new members will be placed on the new company’s board of directors, three from Emergency Filtration and two from Applied Nanoscience.
Even without the news of the merger, these two companies sound ideally suited to work together. As can be guessed by the name, Emergency Filtration Products is a filtration technology company that offers a “highly efficient” microparticle air filter for medical filtration, along with a number of related products, such as a vapor isolation valve, a breathing circuit filter, and a device called the NanoMask. Likewise, Applied Nanoscience is focused mainly around nanotechnology, particularly in the use of nanotechnology as a filtration method to “not only filter bacteria and viruses from the air, but also act as a destructive absorbent” to eliminate microorganisms that get trapped in the filter.
Phillip Dascher, the CEO for Emergency Filtration Products, certainly thinks the merger is an excellent move.
“The merger of these companies will result in a number of advantages that can produce superior value to the shareholders of both companies,” Dascher said in the statement. “Since the bulk of the intellectual property resides with Applied Nanoscience, it makes eminent sense to merge and have both a potentially imminent commercial product application of the technology – the NanoMask – plus the many possible applications to incorporate nanoparticle-enhanced filter media, which include emergency response, home air quality, and transportation.”
Dascher also said that the merger with Applied Nanoscience would “produce a number of significant recurring cost savings,” and that the merger will “enable us to build a significant business within a relatively short time.”
Thomas Allen, the president and CEO of Applied Nanoscience, felt the same way.
“The proposed merger with Emergency Filtration Products will benefit our shareholders as it will allow us to more closely align with a company which will produce the first commercial validation of our technology,” Allen said. “Perhaps most [importantly], this merger will culminate in a company that can access the financial, technical and management resources necessary to build a highly successful enterprise.”
Attempts to review Emergency Filtration’s and Applied Nanoscience’s products were unsuccessful; Emergency Filtration’s Web site refused to load after repeated attempts to visit, and Applied Nanoscience has no listed Web site to support its product claims.
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