A "reverse merger" between Greenwich Pharmaceutical Inc. andBoston Life Sciences Inc. (BLSI) proposed in August has fallenthrough.
The plan called for publicly traded Greenwich to be the survivingentity by issuing 35 million shares of stock to BLSI, giving privatelyheld BLSI shareholders 50 percent interest in the combinedcompany, as well as control. (See BioWorld Today, Aug. 5, 1994,p.1.). The deal was subject to renegotiation after an amendedsettlement agreement with Greenwich (NASDAQ:GRPI)shareholders.
"Our merger partner has taken advantage of an opportunity to reopendiscussions in terms of our agreement," Jeff Randall, president andCEO of Fort Washington, Pa.-based Greenwich, told BioWorld."They have suggested terms significantly more costly to the currentGreenwich shareholders."
Greenwich started looking for a merger partner after the clinicalfailures of its two lead carbohydrate-based drugs. Some shareholderssued Greenwich after one of the drugs, Therafectin, was shot downby the FDA. BLSI. of Waltham, Mass., own no manufacturing orlaboratory facilities. Its emphasis has been to fund research throughsponsored agreements.
Randall said Greenwich is talking to others about potential mergers.If none is worked out the company may be forced to liquidate itsassets and distribute proceeds to shareholders. The company said ithad more than $3 million in cash, enough to last more than 12months. _ Jim Shrine
(c) 1997 American Health Consultants. All rights reserved.