Pacgen Completes Acquisition Of Xphase

Pacgen has completed the acquisition of Xphase Pharmaceuticals (Xphase), following the approval of the TSX Venture Exchange.

Pursuant to a share purchase agreement with Xphase and its shareholders, the company has issued 3m common shares to the shareholders of Xphase in exchange for 100% ownership of the latter as well as management services of some of its principals.

Reportedly, upon the achievement of certain pre-defined business development milestones, the shareholders of Xphase will be entitled to an additional 3.5m common shares of the company.

Pacgen also announced the grant of options to its officers and consultants to purchase 1,910,000 common shares of Pacgen at $0.10 per share. The options granted to executive officers and vice presidents to acquire 1,590,000 common shares vest immediately and expire on 28 July, 2014.

Moreover, the remaining new options to acquire 320,000 common shares of Pacgen until 28 July, 2017 were granted to other consultants in accordance with their consulting agreements.

Following the fiscal year ended 31 March, 2009, options to acquire 643,333 common shares were forfeited or cancelled in relation to the termination of certain employment or consulting agreements.

As a result of the changes, Pacgen now has options outstanding to purchase 3,080,000 common shares of Pacgen or approximately 8.07% of the company’s presently issued and outstanding shares.