Entest Biomedical, Inc. (OTCBB: ENTB) entered into a letter of intent to acquire the substantially all assets of Riverdale Animal Hospital, Charlinda Animal Hospital and Culver Pet Clinic from Asaf A. Qadeer for $0.7 million in cash, stock and debt assumption on February 17, 2011. The percentages of each of these components will be determined once the due diligence has been completed by Entest Biomedical. Any debt assumed will reduce the other purchase price components by the amount assumed. Entest Biomedical will also make a deposit of 0.2 million shares into an escrow account to serve as collateral for the acquisition. The deposit will be returned to Entest Biomedical if definitive purchase agreement is not executed on or before April 30, 2011 or if Qadeer entertains any other offers to purchase the hospitals during the term of this letter of intent. Riverdale Animal Hospital, Charlinda Animal Hospital and Culver Pet Clinic generated revenues of $0.9 million. The letter of intent also contemplates entering into an employment agreement with Qadeer whereby Qadeer would be paid a salary and a cash bonus equal to 5% of the annual gross collections achieved by the hospitals business in excess of $0.9 million and a stock bonus equal to 5% of the annual gross collections achieved by hospitals business in excess of $0.9 million to manage the veterinary businesses. The deal is subject to the execution of one or more definitive agreements and due diligence. The transaction is expected to close no later than April 15, 2011. Entest Biomedical, Inc. (OTCBB: ENTB) cancelled the acquisition of substantially all assets of Riverdale Animal Hospital, Charlinda Animal Hospital and Culver Pet Clinic from Asaf A. Qadeer on February 17, 2012.