Cell Technology Inc., which is leaving the biotechnologybusiness, said Monday that it will acquire and merge with AirMethods Corp., a hospital-based provider of emergency airmedical transportation services and systems.

Cell (NASDAQ:CELL) will acquire privately held Air Methodsthrough the exchange of about 3.6 million restricted shares ofCell common stock for all the Air Method stock outstanding.Boulder, Colo.-based Cell stock closed at $1.13, up 13 cents, onMonday.

Cell began to look for acquisitions after its ImuVert cancertherapeutic showed disappointing results in Phase II clinicaltrials. The company has three overseas licensees and is lookingfor other licensees, said William H. Critchfield, chief financialofficer at Cell.

Air Methods of Denver had unaudited revenues of about $15.3million for the year ended June 30. The company will show anet loss for the year, said Critchfield.

Following completion of the agreement, possibly in the next 60days, the combined company will change its name to AirMethods Corp.

(c) 1997 American Health Consultants. All rights reserved.