Edmonton, January 5th, 2021. Innovotech Inc., (the “Company”) has agreed to issue 599,211 common shares of the Company at a deemed price of $0.19 per common share for the acquisition (the “Acquisition”) of 250,000 NexgenRx Inc. (“NexgenRx”) shares (TSXV – NGX) and 60,000 Cipher Pharmaceuticals Inc. (“Cipher”) shares (TSX – CPH). The Company currently does not hold any of the above-mentioned shares prior to this acquisition. The transaction is valued at $113,850 calculated at the closing price of NexgenRx at $0.225 per share, and Cipher at $0.96 per share on January 4th, 2021.
The NexgenRx and Cipher shares are being acquired from Lonsdale Capital Corporation in a non-armslength transaction that will be subject to regulatory approval by the TSX-V and these shares are intended to be held as long-term investments. A written submission has been made to the TSX-V for the required approval of this Acquisition.
As reported in sequential MD&As the Company has been seeking to grow through whole company acquisitions, and it will continue to do so; however, in the interim, the Company believes that fractional strategic acquisitions as outlined above can provide superior long-term returns on investment with no increase in costs, at lower dilution of equity than whole company acquisitions, while adding flexible liquidity. The opportunity to trade shares for shares in this transaction has the result of expanding the Company’s already strong balance sheet while providing diversification into other biotechnology and health industry segments.
