PositiveID deals FireFlyDX POC diag assets to subsidiary ExcitePCR, which looks to raise $3m

PositiveID (OTC:PSID) said last week it is dealing its stake in the FireFlyDX point-of-care diagnostic system to its subsidiary ExcitePCR as it looks to streamline future development of the system, contingent on a financing deal worth at least $3 million.

PositiveID is selling the assets to the subsidiary through the acquisition of 10.5 million shares of common stock, giving the company a 91% stake in the subsidiary. The move is primarily to increase interest from possible partners and investors, the company said in an SEC release.

“The company believes that the Firefly Technology has significant potential value to stockholders. In discussions with potential partners and/or investors key to the completion and commercialization of the Firefly Technology, it has become clear that such partners and/or investors, are not interested in a highly leveraged company, but would prefer to partner and/or invest in a new company that is debt free, to commercialize the Firefly Technology. The parties have entered into the APA so the buyer can secure financing and then independently pursue the development, improvement and commercialization of the Firefly Technology,” PositiveID wrote in an SEC filing.

In an email to MassDevice.com, a spokesperson from Delray Beach, Fla.-based PositiveID said that the deal is contingent on a financial transaction with net proceeds of at least $3 million paid to the parent company from ExcitePCR.

The FireFlyDX, and its predecessor, the DragonFly DX, are portable pathogen detection systems designed to deliver sample-to-result detection in less than 30 minutes using real-time polymerase chain reaction chemistry, according to ExcitePCR’s website. The FireFlyDX system is designed for multiplex assays through a single-use, disposable cartridge.

The systems are primarily designed for clinical and molecular diagnostics settings, and provide point-of-need and point-of-care results, ExcitePCR said.

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