Nanogen weighs alternatives to Elitech merger
This article was originally published in The Gray Sheet
Executive Summary
San Diego-based molecular diagnostics firm Nanogen says it is investigating alternatives to its pending stock-swap merger with private French diagnostics firm Elitech. Announced last August, the merger would provide Elitech shareholders with about $86 million worth of Nanogen stock - resulting in Elitech investors holding up to 68.7% of the combined company's shares upon completion of the deal. Both firms "believe it is unlikely that Nanogen will have obtained stockholder approval or that, given the current financial market conditions, the companies will have arranged for working capital financing by March 31, 2009, both of which are closing conditions" of the merger pact, Nanogen explains Jan. 21. Options include a restructuring of the original Elitech agreement