MONTREAL, Feb. 6, 2025
/CNW/ - Valeo Pharma Inc. ("Valeo" or the
"Company"), a Canadian pharmaceutical company, announced
today that it has closed a share purchase agreement (the
"Transaction") with Xediton Pharmaceuticals Inc.
("Xediton" or the "Purchaser") in its proceedings
under the Companies' Creditors Arrangement Act (the
"CCAA").
As part of its CCAA proceedings, the Company implemented a
Court-supervised sale and investor solicitation process (the
"SISP") conducted by Ernst & Young Inc., court appointed
monitor in the CCAA proceedings (the "Monitor"). After a
careful review of all offers received in the SISP and following
thorough consultations with its legal advisors, the Monitor and
certain of its stakeholders, the Company's Board of Directors
determined that the Transaction put forward by the Purchaser was in
the best interest of Valeo and its stakeholders and approved the
Transaction.
The Transaction was then approved by the Quebec Superior Court
(the "Court") on February 4,
2025 pursuant to an approval and reverse vesting order (the
"Vesting Order"). Pursuant to and under the terms of the
Transaction, the Purchaser has acquired 100% of the issued and
outstanding shares of Valeo. As a result of the Transaction, the
Purchaser as the new owner of Valeo:
- will retain Valeo's existing licenses and operating
permits;
- will retain substantially all of Valeo's supply and product
listing agreements and related inventory, accounts receivable,
intellectual property, certain other tangible property and
regulatory, clinical and other data; and
- retain ownership of Valeo's subsidiaries, Valeo Pharma Corp.
and VPI Pharmaceuticals Inc.; and
Certain excluded liabilities and excluded assets of Valeo will
be discharged from Valeo pursuant to the Vesting Order. At this
time, the Company expects there will be no recovery for Valeo's
existing shareholders.
Details of the Transaction can be accessed on the Monitor's
website here.
"We are pleased to announce the closing of our transaction with
Xediton and although we would have liked to see Valeo continue its
commercial activities as before, we believe that this transaction
was the best one to preserve a maximum number of jobs at Valeo, and
the continuation of excellent relations and commercial activities
with all our business partners", said Al
Moghaddam, CEO.
"Through this acquisition, we are reaffirming our dedication to
patient care and industry leadership," said George Gafrey, President & CEO of Xediton.
"Our immediate focus will be on ensuring a seamless transition for
patients, healthcare practitioners, Valeo's partners and all
stakeholders, while revitalizing and expanding Valeo's product
offerings."
About Valeo Pharma
Valeo Pharma is a Canadian pharmaceutical company dedicated to
the commercialization of innovative prescription products in
Canada with a focus on
Respiratory/Allergy, Ophthalmology and Hospital Specialty Products.
Headquartered in Kirkland, Quebec,
Valeo Pharma has all the required capabilities and the full
infrastructure to register and properly manage its growing product
portfolio through all stages of commercialization. For more
information, please visit www.valeopharma.com and follow
us on LinkedIn and Twitter.
About Xediton Pharmaceuticals Inc.
Xediton Pharmaceuticals is a specialty pharmaceutical company
with a focus on meeting the needs of patients, physicians and
partners. Xediton Pharmaceuticals is committed to developing,
partnering and making available new and established medicines to
promote the health of Canadians. Located in the Greater Toronto Area, Canada, Xediton Pharmaceuticals has products
in Oncology, Anti-Infectives, Pain, CNS, GI, Ophthalmology, Renal
and CV and has built strong strategic alliances with Global and
International Healthcare and pharmaceutical companies. For more
information, please visit www.xediton.com.
Forward-Looking Statements
Forward-looking statements are statements and information
regarding possible events, conditions or results of operations that
are based upon assumptions about future economic conditions and
courses of action. All statements and information other than
statements of historical fact may be forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "seek", "expect", "anticipate", "budget", "plan",
"estimate", "continue", "forecast", "intend", "believe", "predict",
"potential", "target", "may", "could", "would", "might", "will" and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an
outlook.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
reliance on third-party suppliers and manufacturers, the
availability of additional funding, common risks for pharmaceutical
products, including product liability claims, insurance and
recalls, registration risks in certain jurisdictions, the inability
to implement Valeo's strategy to grow the business, dependence on
key management personnel and executives, competition, currency
fluctuations and the risks, uncertainties and other factors
contained in the section entitled "Risk Factors" in Valeo's annual
information form dated January 29,
2024, a copy of which is available on Valeo's Sedar+ profile
at www.sedarplus.ca
Actual events or results may differ materially from those
anticipated in these forward-looking statements if known or unknown
risks affect Valeo's business, or if Valeo's estimates or
assumptions turn out to be inaccurate. Valeo undertakes no
obligation to update publicly, or otherwise revise, any
forward-looking statements, whether as a result of new information
or future events or otherwise, except as may be required by law. If
Valeo does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements, unless
required by law.
SOURCE Valeo Pharma inc.
