Business
Nexia completes asset review; determines to reorganize into oil and gas company
Nexia completes asset review; determines to reorganize into oil and gas company.
About this update from Canadian Natural Resources Limited
[{"type":"text","content":"\n\n\n\n\nEDMONTON, Jan. 9 /CNW Telbec/ - Nexia Biotechnologies Inc. (\"Nexia\")\n(NEX: NXB-H.V) today announced that the Board of Directors has completed its\npreviously announced assessment of corporate assets. Nexia's management has\nbeen instructed to proceed immediately with a reorganization strategy to\nenhance shareholder value. The conceptual transaction structure will protect\nthe value of the PharmAthene and BioSteel assets, and at the same time allow\nshareholders to participate in the oil and gas industry.\nDavid Tonken, President of Nexia, commented, \"We have determined that it\nis in Nexia's best interests to reorganize the company while demand for public\nvehicles containing Nexia's attributes remains strong. Our management has\nparticular expertise in designing and executing such transactions, including\nthe successful conversion of Synsorb Biotech Inc. into what is now Iteration\nEnergy Ltd. (TSX: ITX). Recent transactions such as Chamaelo Exploration Inc.\n(TSX: CXN), Flagship Energy Inc. (TSX: FG.A), Capitol Energy Resources Ltd.\n(TSX: CPX) and Kereco Energy Ltd. (TSX: KCO) indicate continued strong\ninterest and value in using undervalued public companies as a foundation for\ngrowing profitable businesses. We note that Canadian Natural Resources Limited\n(TSX: CNQ) was an underperforming public entity until a new management team\nled it to great success. We will likely reorganize Nexia within the context of\na Plan of Arrangement. This would ultimately result in Nexia shareholders\nholding a pro-rata interest in two corporate entities. The first, an undiluted\ninterest in a wholly owned subsidiary, which would hold the biotech assets,\nand the second, an interest in Nexia, which would be made available to a new\noil and gas management team seeking to use a public vehicle to raise money and\nacquire additional assets. Shareholders will be fully informed with our\nprogress as this effort develops.\"\n\nABOUT NEXIA\n\nFor more information, please visit Nexia's website at\nwww.nexiabiotech.com . Nexia's complete continuing disclosure documents can be\naccessed through Company's securities filings at www.sedar.com .\n\nFORWARD-LOOKING STATEMENT AND OTHER IMPORTANT INFORMATION\n\nExcept for the historical information presented herein, matters discussed\nherein may constitute forward-looking statements that are su...