Health & Fitness
Health and Fitness
Health and Fitness
Mon, November 2, 2009
Sun, November 1, 2009
Fri, October 30, 2009 SemBioSys enters in non-dilutive financing plan of arrangement
TSX symbol: SBS
"This transaction enables us to strengthen our cash position in a non-dilutive method to extend the development runway for, and further increase value in, our Apo AIMilano and Biosimilar Insulin programs," said James Szarko, President and Chief Executive Officer of SemBioSys. "The past twelve months have been an extremely challenging period for development-stage biotechnology companies. Yet this transaction, together with the AVAC financing in May and the equity issue in July, demonstrates our ability to successfully pursue multiple financing opportunities to strengthen our balance sheet during difficult market conditions."
The non-dilutive transaction involves a corporate reorganization of SemBioSys to be completed under a court supervised plan of arrangement. Under the corporate reorganization, SemBioSys will transfer its assets and liabilities, including the proceeds from this transaction, to a newly incorporated subsidiary company ("New SemBioSys Subco"). On completion of the transaction, SemBioSys securityholders will have exchanged their existing SemBioSys securities on a one-for-one basis for securities of a parent company of New SemBioSys Subco which shall subsequently amalgamate with New SemBioSys Subco ("New SemBioSys").
New SemBioSys will carry on SemBioSys' business operations as a public entity and will retain all rights to related intellectual property and the management team members as before the transaction.
Completion of the transaction is subject to receipt of court and other regulatory approvals and consents. It must also be approved by at least 66 2/3 percent of votes cast by both SemBioSys securityholders and Cathedral unitholders. SemBioSys' Board of Directors unanimously recommends that SemBioSys securityholders approve the transaction.
Additional details of the transaction will be in an information circular expected to be mailed to SemBioSys securityholders in November. The information circular will also be available at [ www.sembiosys.com ] and [ www.sedar.com ]. A special meeting of securityholders is expected to be held in
About SemBioSys
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, the obtaining of court and other regulatory approvals and consents, the obtaining of securityholder approvals, any adjustment with respect to the amount of the non-dilutive financing, including the market price of the securities to be received by New SemBioSys, the satisfaction of closing conditions, and other risks detailed from time-to-time in the Company's ongoing filings with the Canadian securities regulatory authorities which filings can be found at [ www.sedar.com ]. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.
