Business
BELLUS Health Inc. provides financing update and announces restructuring of existing notes
LAVAL, QC, March 31 /CNW Telbec/ - BELLUS Health Inc. (the "Company") (TSX: BLU) announced today ...
About this update from Bluenergies Ltd.
[{"type":"text","content":"\n\n\n\nLAVAL, QC, March 31 /CNW Telbec/ - BELLUS Health Inc. (the "Company")\n(TSX: BLU) announced today that it has entered into binding letter agreements\nwith each of Vitus Investments III Private Limited, a corporation whose shares\nare beneficially owned by Mr. Carlo Bellini, and Victoria Square Ventures Inc.\n(the "Investors") pursuant to which Vitus Investments III Private Limited has\ncommitted to purchase Cdn. $10 million of new convertible notes of BELLUS\nHealth and Victoria Square Ventures Inc. has committed to purchase Cdn. $10.5\nmillion of such notes, for a total financing commitment of Cdn. $20.5 million.\nThe obligations of each of the Investors to subscribe for such notes are\nsubject to a number of customary conditions precedent for a transaction of\nthis nature, such as the execution of definitive agreements, the granting of\nsecurity by BELLUS Health in favour of the Investors, and the obtaining of all\nregulatory approvals. In addition, the closing is subject to the restructuring\nof BELLUS Health's debt and obligations as described below. Accordingly,\nBELLUS Health expects to proceed to the closing of the financing as soon as\npossible.\n\n\nBELLUS Health also announced that three senior executives will step down\nfrom their functions as part of the ongoing restructuring of the Company,\neffective April 3, 2009.\n\n\nThe Company has made an application to the Toronto Stock Exchange under\nthe provisions of Section 604(e) of the Company Manual for an exemption from\nany shareholder approval requirement on the basis that the Company is in\nserious financial difficulty. A committee of independent directors and the\nfull board of directors of BELLUS Health have determined that the Company\nmeets the requirements of such exemption, as well as the exemption from the\napplication of the related party transaction requirements under National\nInstrument 61-101, that the transaction is reasonable in the circumstances and\nis designed to improve the financial situation of the Company. As a routine\npart of the financial difficulty exemption process, the TSX will commence a\ndelisting review of the issuer. The issuance of any securities described in\nthis press release is subject to TSX approval.\n\n\nDetails of the Financing\n\n\nThe new convertible notes to be issued to the Investors will be se...