EKO / TSX Venture Exchange
MONTREAL, June 11 /CNW Telbec/ - Noveko International Inc. ("Noveko")
announces the closing, effective yesterday, June 10, 2008, of the acquisition
of all the shares of Magnum Pharmaceutics Inc. ("Magnum"). The purchase price
of the transaction amounted to $3 million, paid through the issue of
618,557 Class A Shares of Noveko, based on the $4.85 trading price per share
at the close of markets on June 9, 2008.
Magnum is a specialized management company focused on partnering with
small to medium-sized domestic and international pharmaceutical,
over-the-counter drugs and medical device manufacturers and distributors.
Magnum offers strategic sales, marketing and regulatory affairs solutions and
services to partners seeking to commercialize their products in North America
and/or maximize both their revenues and profits.
"We have done business with Magnum's team since February 2008 when our
subsidiary Laboratoire SyMa appointed Magnum as its manufacturer agent for the
Azuro(TM) sanitizer products throughout the Canadian drugstore market. By
acquiring Magnum, we will benefit not only from the Magnum team's collective
knowledge and network in that market for our own products but also from a new
revenue stream since Magnum will continue to execute its existing business
plan with other manufacturers," said André Leroux, Chairman of the Board and
Chief Executive Officer of Noveko.
The 618,557 Class A Shares issued yesterday by Noveko are subject to a
standard four-month holding period.
Noveko has granted, in connection with that acquisition, a total number
of 350,000 options to purchase an equivalent number of Class A Shares of
Noveko, at a price of $4.85 per share, to 10 individual members of Magnum's
team. Noveko also granted yesterday to a vice-president of Laboratoire SyMa,
options to purchase 50,000 Class A Shares at $4.85 per share.
Noveko wishes to remind holders of the Warrants (the "Warrants") issued
on May 31, 2007, that the Warrant exercise period has been reduced from May
31, 2009 to June 30, 2008 in accordance with the terms and conditions of these
Warrants. It is strongly recommended that their holders contact their
respective stockbrokers if they wish to exercise such Warrants. Any Warrant
unexercised by 5:00 p.m. on June 30, 2008 will expire.
Noveko International Inc. is a public holding company. Currently, its
operating subsidiaries are S.A.S. ECM, Noveko Inc., Laboratoire SyMa Inc. ,
Bolduc Leroux Inc. and Magnum Pharmaceutics Inc. . ECM specializes in portable
real-time ultrasound scanners for veterinary and human medicine. Noveko Inc.
develops biomedical and environmental products derived from its patented
antimicrobial filtration technology (Noveko(TM) antimicrobial face masks and
air filters). SyMa specializes in sanitizers, sold under the Azuro(TM) brand.
BLI is involved in the custom processing and distribution of steel products
based on client specifications. Magnum acts as a strategic marketing and sales
agent for the Noveko Group's biomedical and environmental products and
sanitizers and for other manufacturers.
The information set forth in this press release includes certain
forward-looking statements. Such statements are based on assumptions exposed
to major risks and uncertainties. Although Noveko deems the expectations
reflected in these forward-looking statements to be reasonable, the Company
cannot provide any guarantee as to the materialization of the expectations
reflected in these forward-looking statements. The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or accuracy
of this release.
For further information:
For further information: André Leroux, Chairman of the Board and Chief
Executive Officer; Alain Bolduc, President and Chief Operating Officer, Noveko
International Inc., (514) 344-3030, http://www.noveko.com