Patheon seeks dissolution of Global Pharm
Patheon Inc PTI
Shares issued 40,289,127 Oct 6 close $10.30
Thu 7 Oct 99 News Release
Mr. Robert Tedford reports
Patheon has made application to the Ontario Superior Court of Justice
seeking a dissolution of Global Pharm Inc. and a court ordered sale of the
shares or assets of Global Pharm Inc.
Patheon acquired 48 per cent of the shares of Global Pharm Inc. in June of
1995. Global Pharm offers specialized capabilities in scale-up and high
volume production of solid and semi-solid products. For the nine months
ended July 31, 1999, Global Pharm has contributed $6,318,000
(1998-$7,613,000) representing 7 per cent (1998-16 per cent) to Patheon's
revenues and $148,000 (1998-$466,000) or four-10th of a cent per share
(1998-1.3 cents per share) to Patheon's earnings.
Robert Tedford, the chief executive officer of Patheon Inc., stated: "Over
the past several years, Global Pharm has not achieved the growth in
revenues and earnings which we believe it is capable of achieving. The
management of Global Pharm, which owns 52 per cent of its shares, and the
management of Patheon, which owns 48 per cent of Global Pharm shares, have
been unable to resolve fundamental issues relating to the strategic
direction for the company. As such, Patheon concluded that it has no
alternative but to end its arrangements with Global Pharm's management and
seek the assistance of the court in directing a sale of Global Pharm
through a public auction process. Patheon intends to be a bidder for all of
the shares we do not now own." |
