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Warnex Sells Bioanalytical Business to Biotrial; Active Operations Winding Down

NEW YORK (GenomeWeb News) – Warnex announced today a binding agreement to sell its Bioanalytical Services division to contract research organization Biotrial Research for C$6 million (US$6 million).

As a result of the sale, Warnex will no longer have any material active business operations but will maintain its corporate headquarters, the Laval, Quebec-based company said.

In addition to the C$6 million, Warnex will be eligible to receive an additional payment equal to any adjusted revenues from the Bioanalytical business exceeding C$6 million. The transaction is anticipated to be completed on or about Dec. 10.

"The sale of the Bioanalytical Services division represents the final step in our process to resolve the challenges related to the balance sheet and eliminate all company debt for the benefit of all stakeholders," Michael Singer, chairman of Warnex's board, said in a statement.

In the spring, Warnex sold its Analytical Services division to Neopharm Labs.

After completion of the deal, Warnex's board will make a decision on what to do with the company's remaining assets, consisting mainly of the net cash proceeds left over from the Biotrial acquisition. The company estimated that amount to be between C$1 million and C$2 million. Options that the board may consider include identifying new commercial opportunities or liquidating Warnex and distributing remaining assets to its shareholders.

Warnex shares will be transferred to NEX from the TSX Venture Exchange. NEX is a separate trading board of TSX Venture Exchange for listed companies that no longer meet the listing requirements of TSX Venture Exchange. Warnex was delisted from the Toronto Stock Exchange in April.