Zila Signs Merger Agreement With Tolmar

Zila has entered into a merger agreement with Tolmar, a privately-held pharmaceutical research, development, manufacturing and commercial operations company.

Under the terms of the agreement, Tolmar will acquire all of the shares of Zila for a cash purchase price of $0.38 per share, representing an approximate premium of 18% over the closing price of Zila’s shares. Total consideration paid by Tolmar includes the purchase of Zila’s existing $12 million senior secured convertible debt at a discount.

David Bethune, Chairman and CEO of Zila, said: “We are fortunate to have entered into this merger agreement with Tolmar, given Zila’s current financial condition and our inability to access the financial markets. This merger will provide the resources and platform for Zila’s dedicated employees to realize the true worldwide potential of Zila’s oral cancer screening and periodontal products.

Zila’ Board of Directors approved the merger agreement and resolved to recommend that Zila’ stockholders vote in favor of completing the proposed merger with Tolmar. The merger is anticipated to close in late August.