Nexia Biotechnologies to reorganize into oil and gas company
Nexia Biotechnologies Inc. announced that the Board of Directors has completed its previously announced assessment of corporate assets. Nexia's management has been instructed to proceed immediately with a reorganization strategy to enhance shareholder value. The conceptual transaction structure will protect the value of the PharmAthene and BioSteel assets, and at the same time allow shareholders to participate in the oil and gas industry.
David Tonken, President of Nexia, commented, "We have determined that it is in Nexia's best interests to reorganize the company while demand for public vehicles containing Nexia's attributes remains strong. Our management has particular expertise in designing and executing such transactions, including the successful conversion of Synsorb Biotech Inc. into what is now Iteration Energy Ltd. We will likely reorganize Nexia within the context of a Plan of Arrangement. This would ultimately result in Nexia shareholders holding a pro-rata interest in two corporate entities. The first, an undiluted interest in a wholly owned subsidiary, which would hold the biotech assets, and the second, an interest in Nexia, which would be made available to a new oil and gas management team seeking to use a public vehicle to raise money and acquire additional assets. Shareholders will be fully informed with our progress as this effort develops."
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