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Roka Bioscience to sell assets to IEH for $17.5m

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By Joe Whitworth+

18-Aug-2017

©iStock/AndreyPopov
©iStock/AndreyPopov

Roka Bioscience is to sell its assets to the Institute for Environmental Health (IEH) for $17.5m.

The asset sale is the initial step in a possible liquidation of Roka Bioscience.

IEH will operate the newly formed, wholly-owned subsidiary under the name of Rokabio Inc.

The IEH group operates in the US, Canada, Mexico, Germany, Austria, England, China and Australia and is involved in production and distribution of reagents, supplies, test kits and equipment to food testing laboratories and companies.

Roka Bioscience must make a $2.5m milestone payment pursuant to the license agreement and stockholder approval is required for the liquidation plan.

The firm is required to provide transition services to IEH up to the end of this year.

Mary Duseau, CEO of Roka Bioscience, said the transaction is the result of a thorough process.

"The announcement of this asset sale follows an extensive review of a range of strategic alternatives for Roka Bioscience, including obtaining further financing to continue as an independent entity and exploring the possibility of mergers and acquisitions.”

If Roka Bioscience does not complete the transaction it will have limited options for financing ongoing operations and will likely cease operations or file for bankruptcy protection.

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