BELLUS Health Exercises Option to Terminate Lease
Published: Jan 14, 2011
LAVAL, QC, Jan. 14 /CNW Telbec/ - BELLUS Health Inc. (TSX: BLU) ("BELLUS Health" or the "Company") announced today that it exercised its right to terminate the lease of its Laval, Quebec premises as of April 7, 2011 (the "Termination Option"), as provided in the amended lease agreement dated March 31, 2009 with A.R.E. Quebec No. 2, Inc. ("A.R.E."), the landlord of such premises (the "Amended Lease"). The exercise of the Termination Option will result in annual savings of approximately $4.5 million for the Company, representing a total of approximately $43 million in aggregate savings over the course of the original lease term. In consideration for the exercise of the Termination Option, BELLUS Health will issue 20,656,320 common shares from treasury to A.R.E. at a price of $0.29 per share (rounded to the second decimal point), for an aggregate value of $6 million. Pursuant to the terms of the Amended Lease, deferred rent in the amount of $4.2 million (including accrued interest thereon) will be payable to A.R.E. on April 7, 2011, in cash or, at the Company's option, through an issuance of common shares from treasury.