A plan by Hemagen Diagnostics Inc. to acquire loss-plagued Cellular Products Inc. of Buffalo for $600,000 has been approved by the U.S. Bankruptcy Court.
U.S. Bankruptcy Court Judge Michael J. Kaplan approved the offer from the Waltham, Mass., biotechnology firm after no other bidders emerged for Cellular Products. The deal will pay Cellular Products' creditors about 30 cents for every $1 they are owed, but will make the company's stock, which last traded for 1 cent per share, worthless.
The deal is scheduled to close on Nov. 5.
Hemagen will acquire all of Cellular Products' assets, including its offices and production facilities at 872 Main St. Property that Cellular Products owns at 878 Main St. is not included in the deal.
Hemagen has agreed to pay $400,000 at the time the deal closes and another $200,000 a year later. Hemagen also has agreed to assume up to $70,000 of Cellular Products' trade debt that is not past due or was billed to the company within 90 days before or after the deal closes.