Thallion Pharmaceuticals has sold Caprion Proteomics to an affiliate of Chicago Growth Partners. According to Thallion’s 2011 annual report, Thallion held a 16% interest in Caprion and Thallion reports the company will receive $4.5 million from the deal, including the escrow. At closing, total transaction value will be approximately $28 million.
Thallion Pharmaceuticals Inc. (TSX:TLN) (“Thallion”) today announced the sale of Caprion Proteomics Inc. (“Caprion”) to an affiliate of Chicago Growth Partners, including Thallion’s stake in the company. Thallion received approximately $3.9 million (an equivalent of approximately $0.12 per TLN share) in immediate cash proceeds from the sale, and will, subject to certain indemnification obligations, adjustments and other normal conditions, receive further cash proceeds within the next 15 months of up to approximately $583,000 currently held in escrow, for a total cash consideration of approximately $4.5 million.
Pursuant to the sale, Thallion could receive additional cash consideration above the aforementioned $4.5 million if Caprion achieves certain fiscal 2012 revenue and gross margin targets. The sale also entitles Thallion to its pro rata share of net proceeds generated from the licensing, selling or otherwise commercializing diagnostic products or services using certain Caprion products.
“With the sale of our equity stake in Caprion, we have once again materially increased our cash position without any dilution to our shareholders, adding to our already strong balance sheet,” said Dr. Allan Mandelzys, Thallion’s Chief Executive Officer. “This immediate cash injection of close to $4 million greatly enhances our strategic flexibility. We congratulate the Caprion team and Great Point Partners for an excellent outcome for this business and all its stakeholders.”
About Thallion Pharmaceuticals Inc.
Thallion Pharmaceuticals Inc. (TSX:TLN) is a biotechnology company developing pharmaceutical products in the areas of infectious disease and oncology. The Company’s clinical programs include Shigamabs® and TLN-4601, a novel anti-cancer therapy. Shigamabs® is a dual antibody product being evaluated in a Phase II clinical trial for the treatment of Shiga toxin-producing E. coli bacterial infections.