VioQuest to sell Chiral Quest to management

USA-based cancer drug specialist VioQuest Pharmaceuticals has signed a definitive agreement for the sale of its subsidiary, Chiral Quest, to a corporation formed by Chiral Quest's management and others, called Chiral Quest Acquisition Corp.

Under the terms of the deal, Chiral Quest is valued at up to $3.0 million; $1.7 million in cash is expected to be paid to VioQuest Pharmaceuticals upon closing, plus CQAC will assume Chiral Quest's liabilities of up to $1.3 million. "This transaction represents another key, corporate strategic milestone for 2007, which is to solidify VioQuest as a focused drug development company," said Daniel Greenleaf, VioQuest chief executive. "Between the sale of Chiral Quest and the transfer of our net operating losses, VioQuest will have generated approximately $2.0 million of non-dilutive funding over the past six months. This funding will be used to support our drug development programs," he added. Chiral Quest currently has 30 employees in China and 15 in New Jersey. VioQuest anticipates completing the sale in the second quarter of 2007, subject to shareholder approval at a meeting scheduled for May, as well as customary closing conditions.