Forbes Medi-Tech looks to reorganize
reorganization that would made the Canadian company wholly-owned by
a new company.
"This transaction has long-term shareholder value in mind and will enhance the company's ability to finance operations through non-dilutive and alternative forms of financing," said Charles Butt, president & CEO of Forbes. The company said its board of directors has approved the submission of a corporate reorganization to its shareholders for approval. If approved, this reorganization would result in shareholders exchanging their existing shares in Forbes, for shares in a new company incorporated in the Province of British Columbia in Canada. According to Forbes, such an exchange will give the new company the ability to undertake a new set of financing alternatives with a broader range of financial tools at its disposal. "With access to a broader institutional investor pool, we are focused on building long-term shareholder value with the additional activity in our nutritional business and advancing our pharmaceutical development program," said Butt. The Company will be calling a special meeting, currently scheduled to be held in mid February 2008, to consider and, if thought fit, approve the reorganization. Best known for the branded cholesterol-lowering ingredient Reducol, Forbes has seen particular success in Europe. In 2006 Reducal was launched as a product ingredient through retailers including Tesco and Wal-Mart/ASDA in the United Kingdom, Albert Heijn in the Netherlands, Kesko in Finland, Modelo Continente and Jeronimo Martins in Portugal as well as Carrefour in France. Next the company plans to continue expansion into Asia and North America, with a focus on the United States.
