Business
Innovotech Reports Acquisition of Shares of Listed Health Sector Companies
(TheNewswire) Edmonton – TheNewswire - January 5 t...
About this update from Innovotech Inc.
[{"type":"text","content":"Innovotech Reports Acquisition of Shares of Listed Health Sector Companies\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Edmonton –\n \n \n TheNewswire\n-\n \n \n January 5\n \n \n th\n \n \n , 2021 -\nInnovotech Inc., (the “Company”)\n \n \n (TSXV:IOT)\n \n \n has agreed to issue 599,211\ncommon shares of the Company at a deemed price of $0.19 per common\nshare for the acquisition (the “Acquisition”) of 250,000 NexgenRx\nInc. (“NexgenRx”) shares (TSXV – NGX) and 60,000 Cipher\nPharmaceuticals Inc. (“Cipher”) shares (TSX – CPH).    The\nCompany currently does not hold any of the above-mentioned shares\nprior to this acquisition.  The transaction is valued at $113,850\ncalculated at the closing price of NexgenRx at $0.225 per share, and\nCipher at $0.96 per share on January 4\n \n \n th\n \n \n , 2021.\n \n \n \n \n The NexgenRx and Cipher shares are being acquired from\nLonsdale Capital Corporation in a non-arms-length transaction that\nwill be subject to regulatory approval by the TSX-V and these shares\nare intended to be held as long-term investments.  A written\nsubmission has been made to the TSX-V for the required approval of\nthis Acquisition.\n \n \n \n \n As reported in sequential MD&As the Company has\nbeen seeking to grow through whole company acquisitions, and it will\ncontinue to do so; however, in the interim, the Company believes that\nfractional strategic acquisitions as outlined above can provide\nsuperior long-term returns on investment with  no increase in costs,\nat lower dilution of equity than whole company acquisitions, while\nadding flexible liquidity.  The opportunity to trade shares for\nshares in this transaction has the result of expanding the Company’s\nalready strong balance sheet while providing diversification\n \n \n into other biotechnology and health industry\nsegments.\n \n \n \n \n The issuance of shares to an insider pursuant to the\nAcquisition will constitute a “related party transaction” as\ndefined under Multilateral Instrument 61-101, Protection of Minority\nSecurity Holders in Special Transactions (“MI 61-101”).  The\nAcquisition will be exempt from the formal valuation and minority\nshareholder approval requirements ...