KIRKLAND, QC, July 30, 2019 /CNW Telbec/ - Manitex Capital Inc. (TSXV: MNX), ("Manitex"), is pleased to announce that its Board of Directors has declared a special dividend-in-kind (the "Dividend") of 1,256,127 share purchase warrants of Valeo Pharma Inc. (the "Valeo Warrants") held by Manitex. The Dividend shall have a deemed price per Valeo Warrant based on the closing price of the Valeo Warrants (VPH.WT) on the Canadian Securities Exchange (the "CSE") on the trading day prior to payment of the Dividend, expected to occur on or about August 28, 2019, to holders of record of common shares of Manitex (the "Manitex Shares") at the close of business on August 9, 2019 (the "Record Date").
The Dividend will be distributed on a pro rata basis. Based upon the number of Manitex Shares currently outstanding, and ignoring the effect of rounding for fractional interests, one Valeo Warrant will be paid under the Dividend for every 10 (ten) Manitex Shares (or 0.1 Valeo Warrants per Manitex Share) held on the Record Date.
The distribution of the Valeo Warrants forming the Dividend is exempt from the prospectus requirement pursuant to Regulation 45-106. After the distribution of the Dividend, Manitex will continue to hold 357,715 Valeo Warrants.
Each Valeo Warrant enables the holder to acquire one Class A share (a "Share") in the capital of Valeo Pharma Inc. at a price of $0.60 per Share, until July 25, 2022. If at any time, prior to the expiry date of the Valeo Warrants, the volume weighted average trading price of the Shares on the CSE equals or exceeds $1.10 for 20 consecutive trading days, Valeo Pharma Inc. may, within 15 days of the occurrence of such event, deliver a notice to the holders of Valeo Warrants accelerating the expiry date of the Valeo Warrants to the date that is 30 days following the date of such notice (the "Accelerated Exercise Period"). Any unexercised Valeo Warrants shall automatically expire at the end of the Accelerated Exercise Period.
The Dividend is an "eligible dividend" for purposes of the Income Tax Act (Canada) and corresponding provincial legislation and therefore the Dividend will be taxable in the hands of Manitex shareholders. Manitex shareholders with questions regarding the tax treatment of dividends should consult with their own tax advisors or contact their local office of the Canada Revenue Agency and, where applicable, the provincial taxation authorities.
For more details on Valeo Pharma Inc., please consult the issuer's profile on SEDAR at www.sedar.com.
The distribution of the Dividend is subject to final acceptance by the TSX Venture Exchange.
Caution regarding forward-looking statements
This news release may contain certain forward-looking statements regarding Manitex's expectations for future events. Such expectations are based on certain assumptions that are founded on currently available information. If these assumptions prove incorrect, actual results may differ materially from those contemplated by the forward-looking statements contained in this press release. Factors that could cause actual results to differ include, amongst others, uncertainty as to the final result and other risks. Manitex disclaims any intention or obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, other than as required by security laws.
About Valeo Pharma Inc.
Headquartered in Montreal, Quebec, Valeo Pharma is a specialty pharmaceutical company dedicated to the commercialization of innovative prescription drug products in Canada. With a focus on Neurodegenerative Diseases, Oncology, Women's Health and Hospital Specialty Products, Valeo Pharma has a growing portfolio of innovative products. Valeo Pharma has the infrastructure and possesses all the required capabilities to properly advance its products through all stages of registration and commercialization. Valeo Pharma has recently launched Onstryv® (safinamide tablets) in Canada for the treatment of patients suffering from Parkinson's Disease and has entered into a licensing agreement for the exclusive rights to register, distribute and market a low molecular weight heparin biosimilar in Canada. For more information, please visit https://www.valeopharma.com/ and follow us on LinkedIn and Twitter.
About Manitex Capital Inc.
Manitex Capital Inc. invests in promising emerging companies in diversified sectors including life sciences, cleantech and sustainable products/technologies. Manitex provides its portfolio companies with specialized corporate finance and advisory services including corporate strategy, mergers and acquisitions, public markers access and financing. Manitex currently has 12,561,276 common shares outstanding which are quoted for trading on the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
SOURCE Manitex Capital Inc.
For further information: Manitex Capital Inc., Steve Saviuk, Chairman and CEO, Tel.: 514-694-0150, email@example.com