Zila merger agreement with Tolmar amended

Zila has announced that its definitive merger agreement with Tolmar has been amended to reflect a higher price per share.

Under the terms of the revised agreement, Tolmar will acquire, for cash, all of Zila's common stock for $0.45 per share and preferred stock for $0.50 per share. Zila's board of directors encouraged Tolmar to increase its offer from $0.38 per share of common stock to "demonstrate the superiority of its offer over another offer that was contingent upon acquiring Zila's debt," according to the company.

The proposed merger transaction is subject to customary closing conditions, including approval by Zila's stockholders, but is not subject to any financing contingency and is no longer dependent upon Tolmar acquiring Zila's debt.

"The Zila Board of Directors has continued its efforts to secure the best possible outcome for our stockholders," said Zila Chairman and CEO David Bethune in a press release. "In the coming days, we expect to complete a proxy statement that will provide our stockholders with all the details of the proposed merger and how the voting process works."

Zila intends to hold a special meeting of its stockholders as soon as practicable, and the parties anticipate that the proposed merger will close by September. Upon the completion of the proposed merger, Zila will no longer be a publicly traded company.

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