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ARTICLE | Company News

Pharmascience to pay $17.4M to recapitalize Bellus

April 6, 2012 11:24 PM UTC

Generics company Pharmascience Inc. (Montreal, Quebec) will pay C$17.3 million ($17.4 million) to recapitalize Bellus Health Inc. (TSX:BLU) into a new public company. Pharmascience will provide C$8.2 million ($8.2 million) in non-dilutive capital to Bellus and will make a C$9.1 million ($9.1 million) investment for a 10.4% stake in the new company. Existing Bellus shareholders will own 89.6% of the new company.

Bellus (formerly Neurochem Inc.) said the deal will result in a simplified capital structure and increased trading liquidity. Pharmascience plans to collaborate with Bellus on drug development programs of mutual interest. The deal is subject to Bellus shareholder approval at a May 15 meeting. Bellus' board unanimously recommends shareholders approve the deal. ...