Neuro-Hitech, AMBI Pharmaceuticals Inc., MCR American Pharmaceuticals Inc. deal

Neuro-Hitech acquired AMBI and MCR for about $11.8 million in a cash, stock and note deal. AMBI and MCR are specialty pharmaceutical companies that develop and market branded and generic pharmaceutical products, which are primarily targeted to the cough and cold markets. The deal includes a $4.4 million cash payment; a $3 million convertible note bearing 5% interest due on June 6, 2011; a $3 million subordinated note bearing 7% interest due on June 6, 2010; and 3 million shares worth about $1.4 million based on Neuro-Hitech’s close of $0.45 on June 10, the day before the deal was announced. For the three months ended March 31, AMBI and MCR had combined revenues of about $2.7 million. Velocity Health Securities advised MCR. ...