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Forbes Medi-Tech sells Reducol business to MHT
Forbes Medi-Tech Inc has entered into an agreement that will effect the sale of substantially all of its assets to MHT, an affiliate company to Marco Hi-Tech JV LLC.
Following the completion of the asset sale, Forbes intends on settling all of its contractual obligations, appointing a liquidator (Abakhan & Associates) to finalise and wind up its affairs, and distributing the resulting net proceeds to its shareholders.
The company expects that the net proceeds of the liquidation will be in the range of C$0.08 and C$0.13 per share and will be distributed to shareholders within approximately six months following completion of the asset sale.
Charles Butt, president and CEO of Forbes, said: “The last several years were very difficult for many businesses and shareholders, and Forbes is no exception. Historically, Forbes was funded and structured as a publicly traded pharmaceutical development company with a revenue generating nutraceutical business. Following the closure of our pharmaceutical development programme in 2008, the company made significant attempts to expand its nutraceutical business through acquisition funded by equity financing. However, with the fundamental shift in the sentiment of the capital markets in general, we felt compelled to reexamine our long-term plan. Consequently, the company’s board of directors, in the interest of stakeholders, ultimately determined that Forbes should divest its Reducol assets and distribute the net proceeds to its shareholders.”
Source: Forbes Medi-Tech
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