MONTREAL, QUEBEC--(Marketwire -07/19/12)- Thallion Pharmaceuticals Inc. (TLN.TO) ("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. (TLN.TO) 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. Additional information about Thallion can be obtained at www.thallion.com.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements reflect Thallion's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, the failure to fulfill conditions for the release of funds held in escrow and for any future payments to be due to Thallion and the purchaser's ability to make any such future payments which may be due to Thallion under the sale. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Thallion undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.