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ExonHit Announces Final Terms for RedPath Acquisition

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – ExonHit Therapeutics today disclosed the final terms of its proposed acquisition of RedPath.

Under the terms, which are up for a vote by shareholders, ExonHit will pay $12.5 million in cash and $10 million in stock. ExonHIt will issue 2,834,412 new shares of its stock, which represents 7.95 percent of the 35,656,294 ordinary shares that will be outstanding after the close of the purchase.

Starting in 2012, current shareholders of RedPath, a developer of DNA-based cancer tests, may also receive additional payments of up to $9.5 million if certain sales targets are met, ExonHit said in a statement.

The purchase of RedPath, based in Pittsburgh, Penn., by Paris-based ExonHit was announced in late April. In 2009, privately held RedPath reported revenues of $5.4 million.

A meeting for shareholders to vote on the deal is scheduled for June 28 at ExonHit's headquarters. If approved, the acquisition is anticipated to close by mid-July.