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Stock Market & Financial Investment News

News Breaks
May 15, 2014
07:31 EDTZLCSZalicus to sell cHTS service business to Horizon Discovery Group for $8M
Zalicus has entered into an agreement under which Horizon Discovery Group will acquire its combination High Throughput Screening platform and related assets for $8M. The cHTS sale is subject to customary closing conditions for transactions of this type and is expected to close in June. If the sale of cHTS business closes, it would increase the amount of Zalicusí net cash. Pursuant to its merger agreement with Epirus Biopharmaceuticals, Inc., the percentage of the combined company that Zalicus stockholders will own as of the closing of the merger is subject to adjustment at the closing based on the level of Zalicusí net cash as of a determination date prior to the closing. On a pro forma basis, based upon the number of shares of Zalicus common stock to be issued in the merger, (i) current Zalicus stockholders will own approximately 19% of the combined company and current Epirus equityholders will own approximately 81% of the Company if Zalicusí net cash as of a certain determination date is equal to or in excess of $12M, (ii) current Zalicus stockholders will own approximately 17% of the combined company and current Epirus equityholders will own approximately 83% of the Company if Zalicusí net cash as of a certain determination date is in excess of $9M but less than $12M, and (iii) current Zalicus stockholders will own approximately 14% of the combined company and current Epirus equityholders will own approximately 86% of the Company if Zalicusí net cash as of a certain determination date is equal to or less than $9M. Assuming the cHTS sale closes and based on Zalicusí current level of net cash and taking into account Zalicusí projected expenses in connection with the proposed transaction, Zalicus anticipates that the stockholders of Zalicus would own appropriately 17% of the combined company and current Epirus equityholders would own approximately 83% of the combined company upon closing of the merger. In addition to the cHTS sale, Zalicus is also pursuing other opportunities to monetize assets. There can be no assurances that Zalicus will be successful in pursuing any such opportunities or that any actions taken by Zalicus to attempt to increase its level of net cash between now and closing will be successful.
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