Forbes Medi-Tech to wind up
July 13, 2010 by leonardzehr · Leave a Comment
Forbes Medi-Tech (OTCBB:FMTI) has agreed to sell substantially all of its assets to an affiliate of Marco Hi-Tech JV for about $1.4 million (U.S.) as part of a plan to appoint a liquidator, wind up its affairs and distribute the resulting net proceeds to shareholders.
The company said it expects that the net proceeds of the liquidation will be between eight and 13 cents (Canadian) a share, and will be distributed to shareholders within six months of closing the asset sale.
“The last several years were very difficult for many businesses and shareholders, and Forbes is no exception,” CEO Charles Butt said in a statement.
With a “fundamental shift” in the sentiment of capital markets, the company was compelled to re-examine its long-term plan. “Consequently, the company’s board of directors, in the interest of stakeholders, ultimately determined that Forbes should divest its Reducol assets and distribute the net proceeds to its shareholders,” he added.
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