Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Pacgen Biopharmaceuticals, a Canadian life sciences company engaged in the development of therapeutics for the treatment of infectious and inflammatory diseases, and Taiwan's Medigen Biotechnology have mutually agreed to terminate their letter of intent for a business combination of the two companies.
Subscribe to our email newsletter
In accordance with the letter of intent signed in October 2008, the closing of the proposed business combination was subject to certain terms and conditions, including obtaining necessary approvals to enter into a definitive agreement. The parties determined that, in a share for share exchange transaction, the regulatory requirements in Taiwan would require an issuer to redeem dissenting shareholder interests for cash.
Both parties anticipate that this requirement would negatively affect the liquidity and capital resources of the combined company, and that the proposed merger would be a significant undertaking given current financial market conditions. As a result, both parties have mutually elected not to proceed with the signing of a definitive agreement.
Chung-Yu Wang, chairman, interim president and CEO of Pacgen, said: We are disappointed that the merger is not completed as planned despite the strong intention of both parties. Pacgen will review all strategic alternatives in light of this development.