The future of Barbados’ treasured but under-performing sea island cotton sector could be heading into the hands of foreign interests.
Kyto BioPharma Inc. a biopharmaceutical company based in Toronto, Canada, announced today that it had “entered into” a letter of intent “for the acquisition of all outstanding common shares of a company called Barbados Sea Island Cotton Inc., which is claiming to have secured “all the rights to manage” the production of products from the island’s cotton.
Kyto officials said the deal would become reality “through the issuance of 10 million worth of common shares of Kyto BioPharma to the BSC shareholders”.
“BSC used its industry experience, political relationships, and proprietary investments on the Island of Barbados. The company was able to secure all the rights to manage the production. The process will be made through a vertical integration plan that encompasses all the aspects for growing, ginning, knitting, harvesting, spinning, assembling and selling premier ‘Genuine Certified West Indian Sea Island Cotton’ finished products,” the company said.
“The Barbados Sea Island Cotton is tagged as the finest cotton. It represents only one ten of a thousandth per cent of the US$32 billion annual market. BSC plans to increase the production and to market the finest cotton products on a global scale through its own brand to using its existing buyers,” it added.
Kyto said closing of the transition was “subject to due diligence, finalising a private placement of Convertible Debentures of BSC for a minimum of US$1,000,000 and a maximum of US$1,500,000 and BSC completing its financial statements”, noting that “closing is anticipated to occur on or before September 30, 2013”.
“There are currently 12,998,482 common shares of Kyto issued and outstanding. Upon completion of the business combination and the issuance of 10,000,000 common shares to the shareholders of BSC, Kyto will have 22,998,482 common shares issued and outstanding,” the company stated.
“In conjunction with closing the business combination, all of the directors and officers of Kyto will resign and will be replaced by nominees of BSC.”
It also said at closing of the share exchange Jonathan Bryant, who has been involved in other business ventures in Barbados would be President and Chief Operating Officer, while Conrad Wall would be Vice President for Marketing and Sales. (SC)