What drives biopesticide merger

Biopesticide developers Biosys Inc. and Crop Genetics International have signed a merger agreement that will give BIOS access to CROP's in vivo baculovirus production process and its cash.

In the proposed merger, which will be treated as a pooling of interests, BIOS will issue 2.1 million new shares to acquire CROP's 10.8 million common shares, and will issue 1.4 million new shares to acquire CROP's 2.1 million preferred shares.

Exchange ratio

The exchange ratio is 5.2485 shares of CROP common for one BIOS share, and 1.4875 shares of CROP preferred for one of BIOS common. After the deal, BIOS would have 12.8 million shares outstanding on a fully diluted basis.