Oncolytics's Synsorb-held shares released from escrow
Thursday Mar 28 2002 News Release
Dr. Brad Thompson of Oncolytics Biotech reports
Oncolytics Biotech and Synsorb Biotech have received approval from the Alberta Securities Commission to have the previously issued 4,725,000 common shares in the capital of Oncolytics held in escrow by Synsorb released from such escrow without any trading restrictions, provided that at least four million of the shares are distributed to the Synsorb shareholders. The remaining shares will be released to Synsorb for its account without any trading restrictions.
The early release from escrow is subject to approval by the Oncolytics shareholders (by at least a majority of votes cast on the resolution, with the shares held by Synsorb not being voted) at a meeting to be held on or about May 7, 2002, and approval by the Synsorb shareholders (by at least two-thirds of the votes cast on the resolution) at a meeting to be held on or about May 7, 2002. Provided the shareholders of each of Oncolytics and Synsorb approve the early release from escrow, it is anticipated that Synsorb will distribute the Oncolytics shares to its shareholders promptly after the meetings.
Bill Hogg, president and chief executive officer of Synsorb, stated: "The distribution of 85 per cent of our Oncolytics holdings to our shareholders is a critical step in restructuring our business. With our current number of shares outstanding, at the time of distribution our shareholders would receive approximately 0.101 of an Oncolytics share for each Synsorb share they own. Furthermore, after this distribution, the Synsorb asset base and tax pools would still represent a good opportunity for value generation."
Dr. Brad Thompson, president and CEO of Oncolytics, said: "The release of these shares held by Synsorb and distribution to the Synsorb shareholders will significantly broaden our shareholder base and increase the public float of Oncolytics shares by approximately one-third. We view this as a positive development in the long-term outlook for Oncolytics and its current shareholders."
Provided the transaction is approved by the shareholders of Oncolytics and Synsorb, Oncolytics will receive 1.5 million common shares (and the right to receive 400,000 additional shares upon the attainment of certain milestones) currently held by Synsorb in the capital of BCY LifeSciences Inc., a CDNX-listed pharmaceutical company with licence rights to technologies to treat certain diseases of the respiratory tract. In addition, if the distribution is approved, the directors of Synsorb on the board of directors of Oncolytics will not stand for election as directors of Oncolytics at the upcoming annual and special meeting of Oncolytics to be held on May 16, 2002.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
(c) Copyright 2002 Canjex Publishing Ltd. canada-stockwatch.com |
