MONTREAL, QUEBEC--(Marketwired - July 15, 2016) -
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Knight Therapeutics Inc. ("Knight") (TSX:GUD) today announced that it has acquired 11,470,920 common shares (the "Shares") of Pediapharm Inc. ("Pediapharm") in exchange for 221,126 common shares of Knight and 221,126 four-year warrants of Knight, with an exercise price of $10.00. The Shares represent approximately 15.8% of the outstsanding common shares of Pediapharm. Knight owns an aggregate of 13,413,420 common shares of Pediapharm representing approximately 18.5% of the outstanding common shares of Pediapharm. The closing price on the TSX on the last trading day immediately preceding the purchase of the Shares was $8.35, representing an aggregate dollar value in respect of the Knight shares issued of $1,846,402. Using the closing price, the Black Scholes model renders a value of $2.82 for each warrant issued, or $623,575 in the aggregate.
Knight holds 757,500 warrants, which are convertible into 757,500 common shares of Pediapharm at an exercise price of $0.33 per common share at any time until March 30, 2019. Should Knight exercise the warrant, Knight would acquire an additional, 757,500 common shares of Pediapharm, representing 1.0% of the issued and outstanding of common shares of Pediapharm, after taking effect of the exercise of the warrant.
Knight acquired the Shares for investment purposes. Knight may in the future purchase or sell Shares of Pediapharm or otherwise trade in securities of or engage in other transactions with respect to Pediapharm depending on a number of factors, including but not limited to, Pediapharm's financial position, the price levels of the common shares of Pediapharm, conditions in the securities markets and general economic and industry conditions, Pediapharm's business or financial condition, and other factors and conditions Knight deems appropriate.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.'s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.gud-knight.com or www.sedar.com.
This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.'s Annual Report and in Knight Therapeutics Inc.'s Annual Information Form for the year ended December 31, 2015. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.