Spencer Pharmaceutical to Cancel 36 Million Shares, Increasing the Buyout Offer to $1.10 per Share Spencer Pharmaceutical (OTC) (USOTC:SPPH) Intraday Stock Chart Today : Wednesday 24 November 2010
Spencer Pharmaceutical Inc. (PINKSHEETS: SPPH) announced today that it is in the process of cancelling 36,000,000 shares, which had been previously issued, and the said shares will be returned to treasury.
According to the Buyout offer of $245 million, the per share price is now based on 222,431,359 shares outstanding and therefore the reflected amount will be at $1.10 per share. The company expects to sign a definitive agreement with Al-Dorra upon their official visit to Canada schedule for November 30, 2010, where the company will host a dinner in their honor. It was previously noted that the company has the legal requirement to review any third party offer, even if Al-Dorra has irrevocably committed to a $500,000 deposit.
"The reduction in outstanding shares is another way to get a better price for our shareholders," said Dr. Max Arella, President of Spencer Pharmaceutical Inc. "Even if we believe the offer to reflect the value of our enterprise, we will continue to negotiate and look for ways to increase the value to our shareholders," further added Dr. Arella.
About Spencer Pharmaceutical Inc.
Spencer Pharmaceutical Inc. is a US-based Pharmaceutical Research and Development Corporation, which is developing innovative drug release and absorption systems for the treatment of metabolic diseases such as diabetes and metabolic syndrome.
Important Information About Forward-Looking Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above. In addition, such statements could be affected by risks and uncertainties related to the exploration for and development of mineralized material, product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on the Company's website does not constitute a part of this release.
Dr. Max Arella
Spencer Pharmaceutical Inc.
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