BioCentury
ARTICLE | Company News

Merus Labs International, Dacha Strategic Metals deal

June 16, 2014 7:00 AM UTC

Investment company Dacha plans to purchase a minimum of C$11 million ($10.1 million) in Merus shares at C$1.70. The share price is a 9% discount to Merus' close of C$1.86 on June 10, before the companies announced the deal. Assuming a C$11 million investment, Dacha said it will own about a 10.4% stake in Merus. The biotech said it will use a portion of the proceeds for future acquisition opportunities.

Dacha plans to liquidate its assets and contribute the proceeds to a newco, which Merus will acquire. Dacha will then distribute the Merus shares to its shareholders and wind down operations. Additional terms of the deal are expected to be released in a definitive agreement prior to June 30. The companies have agreed to use commercially reasonable efforts to complete the deal by Aug. 15. ...