Deprenyl Research Ltd. said Thursday that it has signed a letterof intent with majority shareholders of Lipopharm to acquire78 percent of that company through a share exchange valuedat Canadian $1.5 million (U.S. $1.26 million).
The company (NASDAQ:DEPLF) said the number of sharesexchanged will depend on the closing price of Deprenyl stockon acquisition day, which should take place the end of June.The stock closed unchanged at $8 on Thursday.
Ed Foster, vice president and chief financial officer of Deprenyl,said an additional payment of $780,000 in company stockwould be made if certain revenue goals are achieved byLipopharm. "If they (Lipopharm) hit $2 million in sales by1994 and $4 million by 1996, we will make the payment,"Foster said.
Foster said Deprenyl will make use of Lipopharm's liposometechnology to put as many as five dermatological products onthe market by August. "Liposome's technology allows us to takeexisting products, put them in this liposome base and marketthem," Foster said. He said the liposome base concentrates theactive ingredient to the disease site, making for a moreefficient, more effective treatment. Foster would not commenton what diseases will be targeted.
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