Amaran Biotech and OBI Pharma share exchange plan to form a strong synergistic cooperation
The Board of Directors of Amaran Biotechnology, Inc. passed a resolution on September 28th to exchange 67% of the Company’s shares with OBI Pharma, Inc. The share exchange transaction will be 53,466,000 shares of Amaran Biotech’s common stock in exchange for 10,693,200 shares of OBI Pharma’s common stock. OBI Pharma intends to issue new shares and increase capital in this transaction.
The agreement in this case exchanges five (5) Common Shares of Amaran Biotechnology, Inc. for one (1) common share of OBI Pharmaceuticals, Inc. The share exchange calculation is based on the following assessments: fair market value of public OBI Pharma’s shares, the financial and operating conditions of both parties, the corporate status of each company, each
company’s value and market price, and the complementarity of products and technologies leading to a strong synergistic cooperation. A report on the corporate status of Amaran Biotech was issued by an independent third-party agency. In addition, an independent accountant has reviewed relevant financial information and issued an opinion on the reasonableness of the share exchange ratio. If approved by the relevant authorities, the date of November 30, 2020, is tentatively set as the base date for the share exchange.
Amaran Biotechnology, Inc. is a contract
manufacturing organization (CMO) established to provide solutions in process
development, analytical services and the cGMP manufacturing of high-value biopharmaceuticals.
The Company currently manufactures and provides the clinical trial drug
substance materials for immunotherapeutic anti-cancer drugs developed by OBI
Pharma. Combining the technical resources of the two companies will provide: a
stable and quality supply of post-approval commercial products; oversight of
factory inspections by global regulatory agencies, advanced chemistry, manufacturing
and control (CMC) process technologies; and strong quality assurance/quality
control (QA/QC) capabilities – all which will result in a strong synergistic