Dyadic International, Inc. (OTCMKTS:DYAI) was a notable decliner in the overnight session. The stock plunged by close to 4% on the back of 6 times the average daily volumes. It is important to point out the fact that the stock has been in a strong uptrend over the last couple of weeks and therefore the move could just be a profit taking one. The relative strength index for the stock has given a sell signal and currently trades in the overbought zone. The stock trades above all important daily moving averages. Traders believe the stock could find support near $1.30 level.
Dyadic International, Inc. (OTCMKTS:DYAI) has decided to sell its industrial technology business for as much as $75 million to DuPont Industrial Biosciences. Once all the formalities are completed, and assets are transferred to DuPont, Dyadic intends to shift all the focus back to its primary biopharmaceutical business.
The senior management of the company is delighted to announce this news and hopes that it will turn out to be a favorable decision for the company in the long run. According to Mark Emalfarb, Founder & CEO, Dyadic, this transaction is the best opportunity that Dyadic could have regarding expanding its reach in its traditional primary biopharmaceutical business. It will not only save company’s cost, but also help it use resources in the best possible way.
Dyadic International, Inc. will now shift its complete focus to C1 technology, which will further help it manufacture and develop critical drugs and vaccines more efficiently and faster than the current production system.
As part of this sale procedure, Dyadic will hand over all of its technology and enzyme assets, including C1 platform – a technology that’s used for the production of enzymes in a wide range of industries, to DuPont. However, DuPont has decided to grant the co-exclusive rights of C1 technology to Dyadic, so that it can use the same in animal and human applications. Dyadic holds enough power to execute sub-licensing agreements in the field.
Even after this settlement, DuPont will have the right to use the C1 platform for the production and development of pharmaceutical products. It will make certain royalty payments to Dyadic for the same once the deal enters into commercialization procedure.
There are certain working capital adjustments and indemnity claims that need to be taken care of to ensure that the deal is executed successfully; until that the purchase price of $8 million will be kept in an escrow account. The duration for this retention is most likely to be 18 months. Further details about the progress of the deal will be made public from time to time to all the investors.