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ERBA shares hit six-week high

Published: 04:27 02 Dec 2015 AEDT

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ERBA says it continues to explore potential acquisition opportunities.

ERBA Diagnostics (NYSEMKT:ERB) shares hit the highest in nearly six weeks after the maker of diagnostic test kits provided an update on its financial restatement progress.

The shares were trading at $1.65, up 35%, at 12:03 p.m. in New York, after touching $2.08, the highest intraday price since October 20.

The Miami Lakes, Florida-based company said in a statement that it intends to restate its financial statements for each of the years ended December 31, 2014 and 2013 and for each of the interim periods ended March 31, 2015 and June 30, 2015.

ERBA said it is working diligently to complete its review of matters relating to such periods and, as soon as practicable thereafter, intends to file amended reports with the Securities and Exchange Commission containing restated financial statements related to such periods.

"ERBA Diagnostics Mannheim GmbH, which is the Company's majority stockholder, intends to continue to support the Company's recently expanded management team in their endeavor to grow and enhance stockholder value," the company quoted Suresh Vazirani, CEO of ERBA Diagnostics Mannheim GmbH as saying.

In an effort to enable the company's management team to do so, ERBA Diagnostics Mannheim GmbH intends to infuse $3.5mln into the company in the coming weeks.

"This capital infusion will be made pursuant to the final tranche of the previously reported stock purchase agreement, which was entered into in April 2011 between the company and ERBA Diagnostics Mannheim GmbH."

ERBA Diagnostics Mannheim GmbH owns approximately 81.6%, of the 44.1 million currently-issued and outstanding shares of the company's common stock.

After giving effect to this capital infusion, ERBA Diagnostics Mannheim GmbH will own 40.6 mln, or 83.3%, of the 48.7mln then-issued and outstanding shares of the company's common stock.

The company said it is also continuing to explore potential acquisition opportunities in an effort to expand its markets and product portfolio as well as upgraded technology offerings.

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