Akela Pharma Announces All-Stock Merger with Nventa Biopharmaceuticals
Fri, 03/27/2009 - 4:44am
MONTREAL — Akela Pharma Inc. (TSX:AKL) and Nventa Biopharmaceuticals (TSX:NVN) said Friday they have finalized a merger agreement that will create a company with a total market capitalization of $4.5 million. The companies said the merger will be implemented through an all-stock transaction that will give Nventa stockholders 0.035 Akela shares for each share they hold. Each Akela share is valued at 28.16 Nventa shares. The resulting company will continue to trade and operate under the Akela name, with Nventa holding a 30 per cent stake in the merged entity. The combined company will be led by Akela's management team, while Nventa will be able to nominate two appointees to the board of directors. The deal, which is still subject to shareholder and regulatory approval, is slated to close in May. Nventa is a maker of drugs for viral treatments, while Akela is developing a drug designed to combat cancer pain as its lead product.