RICHMOND, Va.--(BUSINESS WIRE)--Jul 28, 2010 - Commonwealth Biotechnologies, Inc. (“CBI”) (CBTE.OB) is providing this update to inform the market regarding its near term plans to move the company into a more viable long term position in the market. Concisely stated, the strategy is to divest its remaining assets and thereby create a debt free company with both cash and a reserve of authorized but not issued shares. This debt free shell will then seek a merger opportunity with a company with a strong growth prospectus.

Update

In 2009, the Board of Directors of CBI charged management with a major re-organization which, at the time, had 2 principal goals. The first was to divest its Richmond based business assets, CBI Services and Fairfax Identity Labs. The second was to use its remaining share capital to acquire an entity that could bring long term stability and growth potential to the company.

The first goal was accomplished on November 2, 2009 when the company sold its Richmond based businesses to Bostwick Laboratories, Inc. (“BL”), a nationally recognized clinical testing laboratory, also based in Richmond. Concurrently, BL signed a 10 year lease with CBI for its Richmond laboratories.

In pursuit of the second goal, on December 28, 2009, CBI entered into a revised and binding definitive share purchase agreement to acquire the parent of Shanghai-based GL Biochem and its associated businesses (collectively the “GL Group”). CBI believed that, by acquiring the GL Group to complement its subsidiary Mimotopes Pty Ltd, it would become the largest supplier of pre-clinical peptide reagents and custom peptide synthesis services in the world. In spite of a very vigorous effort on the part of CBI, all of the elements necessary to bring this transaction to a shareholder vote and ultimately to completion have not fallen into place. While CBI is not abandoning this transaction altogether, at this point CBI thinks it is highly unlikely that this transaction will close.

That being the case, CBI has begun to aggressively pursue other options. Specifically, an active marketing effort is under way to affect the sale of the Richmond real estate asset. This asset has a substantial equity component and a sale at current market value would render the company debt free.

Although Mimotopes was a key to a GL Group transaction, it does not bring the same value to CBI itself. However, it is a viable stand alone business following a number of changes made over the last 12 months. Therefore, CBI believes it will be able to find a suitable cash buyer for Mimotopes within a reasonable time. That effort has already begun.

Finally, if CBI is able to divest both the real estate and business assets under terms and pricing consistent with the current market, CBI will represent a clean public shell with significant cash. In that circumstance, CBI believes it will be able to merge into another entity with a strong base business and a strong potential to add shareholder value. This effort has begun also.