- Willow Biosciences (TSX:WLLW) announced an agreement to sell its wholly-owned operating subsidiary, Epimeron USA Inc., to a privately-held, arms-length entity based in the U.K.
- The transaction, valued at US$3.38 million in cash, includes Willow’s biotechnology business, intellectual property, and R&D team
- The company plans to use a portion of the net proceeds for debt reduction, while retaining the remainder to review future cash requirements and potential opportunities aimed at maximizing shareholder value
- Willow Biosciences stock (TSX:WLLW) opened at $0.04
Willow Biosciences (TSX:WLLW), a biotechnology company specializing in industrial manufacturing of ingredients, has announced an agreement to sell its wholly-owned operating subsidiary, Epimeron USA Inc., to a privately-held, arms-length entity based in the United Kingdom. The transaction, valued at US$3.38 million in cash, includes Willow’s biotechnology business, intellectual property, and R&D team.
Transaction details
The sale marks the culmination of Willow’s previously announced strategic review. The company plans to use a portion of the net proceeds for debt reduction, while retaining the remainder to review future cash requirements and potential opportunities aimed at maximizing shareholder value.
Approval and closing
The transaction is expected to close on or about April 30th, 2025, subject to customary closing conditions. It requires approval from shareholders holding at least 66.67 per cent of shares voted in person or by proxy at the annual general and special meeting of shareholders scheduled for April 25th, 2025. Willow’s Board of Directors unanimously approved the transaction and recommends that shareholders vote in favor of it. Major shareholders, directors, and officers, who collectively control 22.17 per cent of the outstanding common shares, have signed onto voting support agreements to vote in favour of the transaction.
Strategic review and future plans
John Skeet, Willow’s CEO, stated in a media release, “This transaction is a significant step in our strategic review process. By reducing debt and carefully evaluating future opportunities, we aim to enhance shareholder value and position Willow for long-term success.”
About Willow
Willow Biosciences Inc. develops and produces precision fermented functional ingredients for the health and wellness, food and beverage and personal care markets.
Willow Biosciences stock (TSX:WLLW) opened more than 12 per cent lower at $0.04.
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