Warnex to sell Bioanalytical Services division for C$6m
To contract research organisation Biotrial Research in Rennes, France
Warnex, a Canadian supplier of laboratory services to the pharmaceutical sector, is to sell its Bioanalytical Services division to Biotrial Research, a privately owned contract research organisation headquartered in Rennes, France, for C$6m (US$6m).
As a result of the sale, Warnex will cease to have any material active business operations, but will maintain its corporate head office in Laval, Quebec.
In addition to the $6m, Warnex will be eligible to receive an additional payment equal to any adjusted revenues from the Bioanalytical Services business exceeding $6m.
The transaction should be completed in December.
‘The sale of the Bioanalytical Services division represents the final step in our process to resolve the challenges related to the balance sheet and eliminate all company debt for the benefit of all stakeholders,’ said Michael Singer, chairman of Warnex.
After closure of the deal, the Warnex board will then decide what to do with the company’s remaining assets, which will consist mainly of the net cash proceeds remaining after the transaction. The company estimates that this will amount to between $1m and $2m. Options that may be considered include identifying new commercial opportunities or liquidating Warnex and distributing remaining assets to its shareholders.
