MONTREAL and SAN DIEGO, March 27 /CNW/ - Akela Pharma Inc. (TSX: AKL - News) and Nventa Biopharmaceuticals (TSX: NVN - News) today announced the execution of an arrangement agreement to combine the two companies by way of a plan of arrangement under the Business Corporations Act (British Columbia). The board of directors of both companies unanimously approved the agreement.
The transaction will be effected by an exchange of Akela common shares for the outstanding shares of Nventa on the basis of 0.0355 Akela shares for each Nventa share (or 1 Akela share for 28.169 Nventa shares), resulting in an approximate 70/30 ownership split between Akela and Nventa shareholders, respectively, in the combined entity. The public company will retain Akela's name, will operate under Akela's management, and will continue to be listed on the Toronto Stock Exchange under the ticker symbol AKL. Nventa will have the right to nominate two directors to the board of directors of Akela. The transaction is subject to approvals from Nventa shareholders, the British Columbia Supreme Court and the Toronto Stock Exchange. Subject to the satisfaction of certain customary closing conditions, including a minimum amount of $1.5M of net cash in Nventa, the transaction is expected to close in May 2009.
About Nventa Biopharmaceuticals Corporation:
Nventa is developing innovative therapeutics incorporating its proprietary CoVal(TM) fusions for the treatment of viral infections and cancers, with a focus on diseases caused by the human papillomavirus (HPV); and a Toll-like Receptor 3 (TLR3) agonist for use as a vaccine adjuvant and as an immunotherapeutic for viral infections and cancer. The company is publicly traded on the Toronto Stock Exchange under the symbol "NVN". For more information about Nventa Biopharmaceuticals Corporation, please visit the company's website located at www.nventacorp.com.
About Akela Pharma Inc.:
Akela Pharma is a drug development company with its lead product, Fentanyl TAIFUN(R), being developed for the treatment of breakthrough cancer pain. Fentanyl TAIFUN(R) is a fast-acting fentanyl formulation delivered using the Company's TAIFUN(R) multi-dose dry powder inhaler platform. Akela's pipeline also includes a growth hormone releasing hormone (GHRH), which is being developed for frailty and wasting in chronic renal disease. The product is also suitable for other chronic diseases involving a catabolic state and wasting. PharmaForm, Akela's wholly owned subsidiary, is a leading specialty contract service provider offering a portfolio of innovative technologies in drug product development, manufacturing and analytical testing to the pharmaceutical and biotechnology industries. Through its diverse offerings, PharmaForm solutions help clients reduce development costs and accelerate time-to-market.
Akela's common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "AKL" with 21.6 million shares outstanding.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Akela Pharma Inc. and/or Nventa Biopharmaceuticals Corporation with respect to performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
For further information
Dr. Taneli Jouhikainen, Acting CEO, Akela, (512) 834-0449, ext. 275
Gregory M. McKee, President and CEO, Nventa, (858) 202-4940