ProSep Inc. has entered into a binding memorandum of understanding for the sale its 51% investment in ProSep Kolon Company Ltd, a South Korean joint venture with Kolon Group, for total consideration of $5 million. After reimbursement of a related $1 million debenture, this transaction will provide net proceeds of approximately $4 million to be used as working capital.

"Since 2011, ProSep has been investing in accelerating the commercialization of its innovative technologies, expanding business development and process engineering teams and engaging in various partnerships. Although revenues grew in 2012, the Company recently implemented a cost optimization program and reduced headcount in order to provide annual operating savings of almost 15% of operating expenses and divested its investment in its South Korean joint venture. These initiatives provide additional liquidities to support projected growth with the objective of reaching profitability," said Jacques L. Drouin, President & CEO.

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