NEWS!!Allegiance's Prime shares acquired by Tullaree
2003-06-11 15:27 ET - News Release
See News Release (C-YAN) Allegiance Equity Corp
Mr. David Solomon of Allegiance reports
Allegiance Equity and Prime Pharmaceutical Corporation have disclosed that the proposed private placement transaction (see Stockwatch news on May 27, 2003) for $300,000 with Tullaree Capital over the next four months has been accepted by the TSX Venture Exchange. The first purchase of 350,000 common shares took place on June 5, 2003.
Tullaree will subscribe for 1.5 million common shares in the capital of Prime at 20 cents per share. Following the completion of the transaction and the issuance of the Prime shares, Tullaree will hold a 9.8-per-cent fully diluted interest in Prime.
Prime is a private Ontario pharmaceutical corporation focusing in dermatology. Prime's treatment combines a natural active ingredient, processed via a patented manufacturing system, with a patented biotech topical delivery system. This new treatment displays break-through results as it is highly effective and is combined with a very low side effect profile, a major concern of both physicians and patients suffering with psoriasis. Furthermore, continued use has not indicated a loss of its safety and effectiveness. Prime's product will be in pharmacies across Canada as an over-the-counter treatment available without a prescription. Prime's psoriasis therapy meets all North American health regulations. Prime is poised to make a significant impact into the $1-billion North American psoriasis market immediately. Future corporate growth will be supported through Prime's portfolio of acquired intellectual property and licensed dermatology products.
Tullaree's completion of the transaction is in anticipation of a potential business combination involving Tullaree and Prime or its designated subsidiary, the details of which are still being negotiated. A further news release will be issued as more detailed information becomes available. Pursuant to the rules of the TSX-V, the common shares of Tullaree and Allegiance will remain halted until the terms of the potential transaction are finalized.
Allegiance is the largest shareholder of Prime and holds 6,140,958 shares, which is 39 per cent of the issued shares of Prime. There are 15,659,680 common shares of Prime issued and outstanding. There are 4,079,225 common shares of Allegiance issued and outstanding.