Mach One, a biological solutions company for the agricultural and consumer market, has signed an agreement to acquire Pacific Rim Foods.

Under the terms of the agreement announced yesterday (24 November), Mach One will acquire the hamburger and frankfurter manufacturer Pacific Rim for US$5m through a combination of stock and convertible debentures.

Around 70% of the purchase price will be paid in common stock of Mach One with a valuation set at 12.5 cents per share. The remaining 30% of the purchase price will be taken by Pacific Rim shareholders in the form of a five-year convertible zero coupon note with a conversion price of 12.5 cents per share.

The purchase price will be funded out of available authorised shares, the company said. The transaction is not subject to financing conditions.

"This acquisition directly supports our strategy of expanding our product suite throughout the world," said Monte Tobin, chairman and CEO of Mach One. "Acquiring Pacific Rim Foods not only gives Mach One the opportunity with their cash and assets to move our products into full-scale manufacturing, but we are equally as thrilled to be able to capitalise on their tremendous presence in China through its Jilin Jimei Foods."

The company estimates that the closing will occur in December.