Nov 6 (Reuters) - Tetra Bio Pharma Inc TBP.V :
* TETRA BIO-PHARMA ENTERS INTO NON-BINDING PROPOSAL TO ACQUIRE PANAG PHARMA INC.
* TETRA BIO PHARMA INC - DEAL FOR $12,000,000
* TETRA BIO PHARMA INC - PANAG WILL REMAIN A SEPARATE SUBSIDIARY OWNED 100% BY TETRA
* TETRA BIO PHARMA INC - PURCHASE ON A DEBT-FREE BASIS
* TETRA BIO PHARMA INC - PROPOSAL ALSO CONTEMPLATES PAYMENT BY TETRA TO VENDORS OF AN AGGREGATE AMOUNT OF UP TO $15 MILLION IN MILESTONE PAYMENTS