Epitope Inc. has priced warrants to be issued in a settlement ofa shareholders' class-action suit.
The Beaverton, Ore., company (ASE:EPT) said the exercise pricefor warrants to purchase 700,000 shares of common stock willbe $17.13 per share. The price represents the average closingprice of Epitope Inc. common stock for 20 trading daysbeginning March 24, 1993, and ending April 21. The company'sstock closed at $16.75 a share on Wednesday, down 25 cents.
Shareholders in the class-action suit accused Epitope of failingto promptly reveal potentially negative information from theFDA about the saliva-based OraSure test kit for HIV, which thecompany had hoped would be considered a screening device soit would not need regulatory review as a diagnostic.
The warrants will be issued to people who purchased Epitopecommon stock from May 15, 1991, through June 30, 1992. Anotice to Epitope shareholders recently advised them theymust mail proof of claim forms by July 6, 1993. The warrants,which will be freely transferable, will have an exercise periodof 103 days after the date of issuance.
The U.S. District Court of Oregon has granted preliminaryapproval for the settlement and will consider final approvalafter a fairness hearing scheduled for June 14.
The cash portion of the settlement was paid by the company'sinsurance carrier, and if all warrants were exercised, Epitopewould receive proceeds of approximately $12 million, accordingto Adolph Ferro, president and chief executive officer. -- NancyGarcia
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