US-based medical devices company, Biomagnetics Diagnostics has announced plans to spin off its Chinese bio-fuels operation, Zhuhai Oil Energy Sciences and Technology, located in Guangdong Province, China, into a separate publicly traded entity. According to the company, it has been working on a structure to maximize shareholder value. The new company, which will trade on the over-the-counter bulletin board (OTCBB) as a fully reporting organization with the SEC, will enter into a contract with Biomagnetics to purchase all intellectual property and contract rights to the proprietary low carbon fuel formulations. “A green revolution is sweeping through China resulting in a critical demand for low carbon bio-fuels. These unique formulations greatly reduce particulate and carbon emissions while still being cost competitive,” said Mr Clayton Hardman, CEO of Biomagnetics. “We are negotiating specific terms while waiting for Generally Accepted Accounting Principles (GAAP) certified audits. Specific terms to finalize include capital compensation and percentage interest in the new company Biomagnetics will receive for selling its bio-fuel rights. This should add to shareholder value, and reduce or eliminate future shareholder dilution.