Business
BELLUS Health signs agreement to acquire Innodia
LAVAL, QC, July 16 /CNW Telbec/ - BELLUS Health Inc. (NASDAQ: BLUS; TSX: BLU, formerly known as N...
About this update from Bluenergies Ltd.
[{"type":"text","content":"\n\n\n\nLAVAL, QC, July 16 /CNW Telbec/ - BELLUS Health Inc. (NASDAQ: BLUS; TSX:\nBLU, formerly known as Neurochem Inc.) announced today that it has signed a\ndefinitive agreement to purchase capital stock of Innodia Inc. This will\nresult in the BELLUS Health Group owning 100% of the capital stock, thereby\nacquiring all of the business of Innodia including the intellectual property\nassets related to its diabetes and obesity projects. BELLUS Health has also\neffectively regained the rights to a diabetes project and certain compounds\npreviously licensed by it to Innodia and, as a result, now holds the exclusive\nrights to BELLUS Health's diabetes platform and all related compounds. Innodia\nInc. is a private company engaged in developing compounds for the treatment of\ndiabetes, obesity and related metabolic conditions and diseases.\n\n\nThe purchase price, in the amount of approximately $1.3 million including\nthe purchase of the outstanding debt from Investissement Quebec, will be paid\nby the issuance from treasury of BELLUS Health common shares. Additional\nconsideration consisting either in treasury shares or cash, at the option of\nBELLUS Health, is conditionally payable on the first anniversary of the\nclosing of the transaction, contingent upon the determination of the value of\ncertain assets at that time. The total purchase price is expected to\napproximate the net assets of Innodia. Innodia has secured credit facilities\navailable of approximately $3 million and tax losses of more than $25 million.\nThe Toronto Stock Exchange has issued an approval letter in respect of the\ntransaction subject to customary conditions. A significant number of the\nshares to be issued will be subject to a hold period under applicable\nsecurities legislation.\n\n\n"BELLUS Health's acquisition of Innodia is a timely opportunity because\nit allows the Company to gain access to Innodia's expertise and rights in\ndiabetes and obesity at an attractive price and will help accelerate our own\nprojects in diabetes and expand our pipeline through Innodia's identified\ncandidate leads," said Dr. Francesco Bellini, Chairman, President and CEO of\nBELLUS Health. "Several members of the Innodia research team will share their\nknow-how in diabetes and metabolic syndrome, thereby reinforcing the existing\nexpertise of the BELLUS Health...