Shares in Spectrum Rare Earths Ltd (ASX:SPX) continue to be suspended from trading pending an announcement regarding its change of activities.
Shares stand suspended from trading since May 17, 2016.
Spectrum has executed a Heads of Agreement for the acquisition of the entire issued capital of BCAL Diagnostics Pty Limited, a Sydney-based company developing a blood-based test for the detection of breast cancer.
The BCAL (Breast Cancer Associated Lipids) technology is a blood based biomarker test based on detection and analysis of breast cancer-specific phospholipids.
This provides an opportunity as the current breast cancer screening market is dominated by imaging technologies such as mammography and ultrasound.
In addition, there is currently no effective blood-based screening or diagnostic test for breast cancer on the market worldwide.
BCAL Dx is working with the Kentucky, USA, based research team to develop the technology as a breast cancer screening test.
A pilot clinical study confirmed the BCAL technology can accurately discriminate between breast cancer positive and healthy controls.
In December 2015, Spectrum's Board resolved to discontinue expenditure on its rare earths projects following a strategic review that identified the depressed rare earths market, difficulty in raising capital and the company's limited financial resources as major stumbling blocks.
Under the agreement with BCAL, Spectrum will issue fully paid ordinary shares equivalent to 65 per cent of its fully diluted issued capital at the time of completion of the transaction.
The acquisition is subject to due diligence, shareholder approvals and the issue of $3.5 million of new capital by Spectrum for compliance with ASX admission stipulations.
Spectrum will thereafter change its name to BCAL Diagnostics Limited as a result of the changed activity. It is expected to recommence trading, post-acquisition, by September 12, 2016.
Spectrum held cash of $280,000 as at March 31, 2016.
Shares in Spectrum last traded at $0.006.
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