OTTAWA, March 5 /CNW Telbec/ - ImaSight Corp announces today that a proposal to creditors has been accepted, resulting in the sale of the CRD-5 drug assets to Cerenis, effective February 19, 2010.
On February 24, 2009, the Corporation sought BIA (Bankruptcy and Insolvency Act) protection in order to make a proposal to its creditors. At that time, the Corporation entered into negotiations with potential buyers of the CRD-5 related assets to pay its creditors. An agreement was reached with Cerenis and the offer was accepted by the Board on September 22, 2009. This offer was submitted and accepted by the creditors on September 25, 2009 and the court approved the transaction on October 29, 2009. The closing of the transfer of assets is effective February 19, 2010.
The agreement includes an initial payment of $75,000 by Cerenis for the transfer of CRD-5 related assets. The majority of that payment will be used to pay the creditors and the remaining amount will be used to pay restructuring fees to maintain its activities in the future. The agreement also includes royalty payments on direct and indirect sales to be distributed to the creditors until they are paid in full. The Corporation does not plan to maintain any activities other than the distribution of the royalty payments.
On July 21, the Corporation divested its ownership in ImaSight Inc. because it could not sustain its activities and the subsidiary was required to make a proposal to its creditors. As of July 22, both companies are independent corporations.
The Corporation is still in default of its obligations to comply with TSX requirements and does not know if it will be in position to comply in the future. A cease trade on all shares is in effect since May 2009.
SOURCE IMASIGHT CORP.
For further information: For further information: Jean Caseault, secretary, firstname.lastname@example.org