Tuesday, 4 December 2012

Royalty Free Acasti Becomes “More Attractive For A Future Partnership” - Positions For U.S. Listing?

Acasti Pharma

Shares Outstanding: 71.0 million
Fully Diluted: 80.1 million

 While Acasti shareholders anxiously await news on results from its Open Label Study (the first of two Phase II Clinical Trials), Acasti and Neptune announced today that it has entered into a “prepayment agreement”. To summarize this deal, Acasti will issue $15.5 million in stock at a price of $2.30 per share to Neptune in order to remove yearly royalties that would have been owed to Neptune. This year would have amounted to $700,000.

Dr. Harlan Waksal, Executive VP, Business & Scientific Affairs for Acasti summed up the agreement and why this is significant to shareholders, “Ultimately, being a royalty free corporation brings more flexibility and value in deal negotiation with potential business partners."

In order to move forward with this deal, Acasti exercised the option embedded within its exclusive technology license agreement with Neptune dated August 7, 2008 that permits Acasti to pay in advance all of the future royalties payable under the License Agreement.

For Neptune this deal increases its ownership of Acasti from approximately 57% to approximately 61%.

One additional reason for the move could be to make Acasti even more attractive to U.S. investors. It’s no secret that the company has been looking at securing a U.S. listing and has been talking about this objective since early this year. Should we see positive preliminary data from APO, it would be well positioned to tap the U.S. market for new investors.

To view today’s news release,  please click here