Spencer Pharmaceutical Inc. (pinksheets:SPPH) announced today that it is in the process of cancelling 36,000,000 shares, which had been previously issued, and the said shares will be returned to treasury.
According to the Buyout offer of $245 million, the per share price is now based on 222,431,359 shares outstanding and therefore the reflected amount will be at $1.10 per share. The company expects to sign a definitive agreement with Al-Dorra upon their official visit to Canada schedule for November 30, 2010, where the company will host a dinner in their honor. It was previously noted that the company has the legal requirement to review any third party offer, even if Al-Dorra has irrevocably committed to a $500,000 deposit.
"The reduction in outstanding shares is another way to get a better price for our shareholders," said Dr. Max Arella, President of Spencer Pharmaceutical Inc. "Even if we believe the offer to reflect the value of our enterprise, we will continue to negotiate and look for ways to increase the value to our shareholders," further added Dr. Arella.
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