Avexa, Cytopia, Progen deal
Progen proposed a A$40 million (US$25.5 million) share buyback at A$1.10 after the company's shareholders rejected a proposed merger with infectious disease company Avexa. The Avexa merger would have been a stock deal that was to be completed following a A$20 million share buyback. Progen said shareholders rejected the merger because they wanted a larger cash return on investment. Progen said a shareholder meeting requested by competing bidder Cytopia to discuss its proposal to replace Progen's board with three independent directors, merge the two companies and offer a buyback of 100% of Progen shares at A$1.10 will proceed on March 27 (see BioCentury, Jan. 5 & Feb. 2).
Avexa will receive a A$500,000 ($319,150) termination fee. At the end of the company's fiscal 1H09 on Dec. 31, 2008, Progen had A$72.9 million (US$50.3 million) in cash and a six-month operating loss of A$1.8 million (US$1.3 million). ...