NewGen Acquires MicroSort Reproductive Technology

January 21, 2025

DENVER, Colo., Jan 21, 2025 (247marketnews.com)- NewGenIVF (NASDAQ: NIVF), an Asian fertility services provider, announced the acquisition of MicroSort, a proprietary sperm-sorting technology. The acquisition, valued at US$5 million, will enhance NewGen’s ability to offer advanced reproductive solutions. This strategic move strengthens the company’s position in the rapidly expanding global fertility services market. NewGenIVF also broadens its range of offerings for individuals and couples seeking reproductive assistance.

MicroSort’s technology allows for the separation of sperm cells carrying X and Y chromosomes before in vitro fertilization (IVF) procedures. Using fluorescent DNA staining and sophisticated flow cytometry, MicroSort enables precise sperm sorting based on chromosomal content. This technology is beneficial for couples seeking gender selection or those wanting to prevent genetic disorders, specifically X-linked or X-limited diseases. MicroSort is already licensed in several countries, including Thailand, Japan, Cambodia, and Mexico, with established commercial applications.

The $5 million MicroSort technology purchase price consists of $750,000 in cash and 2,500,000 ordinary NIVF shares, at a deemed price of $1.70 per share. The purchase price, approved by NewGen’s board, is based on an independent third-party valuation. This transaction is expected to increase the company’s shareholders’ equity by $4.25 million upon completion, optimizing capital allocation and enhancing NewGen’s technological capabilities. Additionally, NewGen will assume MicroSort’s existing licensing agreements, generating immediate revenue from ongoing license fees.

Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, stated, “This acquisition marks a major step forward in our growth strategy, enabling us to offer cutting-edge fertility solutions to our clients. By expanding our service offerings, we also strengthen our balance sheet through the issuance of equity at a premium to market value. This will help us meet Nasdaq Capital Market’s continued listing requirements. The integration of MicroSort into our platform will bolster our position in the fast-growing Asian fertility services market and provide valuable options for families looking to prevent genetic disorders, particularly in markets like China. We are excited to bring these new services to our customers and believe this acquisition will have a positive impact on both our clients and our company’s growth.”

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