Acacia plans to make subsidiary CombiMatrix independent public company

By E. Janene Geiss

Philadelphia, Jan. 9 - Acacia Research Corp. said Monday that its board of directors has approved a plan for its wholly owned subsidiary CombiMatrix Corp. to become an independent public company.

Acacia expects to complete the transaction in the second quarter of 2006 subject to receiving a satisfactory tax opinion from legal counsel and completing the required filings with the Securities and Exchange Commission, according to a company news release.

If conditions are met, Acacia said it will redeem all of the issued and outstanding shares of Acacia Research-CombiMatrix common stock for all of the common stock of CombiMatrix, which will register its stock under the Securities Act of 1934 and plans to list its shares for trading on Nasdaq.

"The board of directors decision enables CombiMatrix Corp. to become an independent public company. This will benefit both companies by eliminating the risk factors associated with the current capital structure," Paul Ryan, chairman and chief executive officer of Acacia, said in the release.

"The separation of the two companies should enable each company to optimize its own identity and business strategy, making an investment in the companies more attractive to investors," Ryan said.

CombiMatrix should have better visibility in the health care market as an independent public company, Amit Kumar, president and chief executive officer, of CombiMatrix, said in the release.

Acacia Research Corp., based in Newport Beach, Calif., comprises two operating groups, Acacia Technologies group and CombiMatrix group.

Acacia Technologies develops, acquires and licenses patented technologies. Acacia controls 38% portfolios, which include more than 140 U.S. patents and certain foreign counterparts, covering technologies used in a wide variety of industries.

CombiMatrix is developing a platform technology to rapidly produce customizable arrays, which are semiconductor-based tools for use in identifying and determining the roles of genes, gene mutations and proteins.

The group's technology has a wide range of potential applications in the areas of genomics, proteomics, biosensors, drug discovery, drug development, diagnostics, combinatorial chemistry, material sciences and nanotechnology, officials said.

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