(Alliance News) - Verseon Corp on Thursday said it will not be in a position to sign the sale-leaseback for its research, development, and operations facility in Fremont, California, ahead of its annual general meeting scheduled for Monday.
On Wednesday, the clinical-stage pharmaceutical company said the sale-leaseback agreement for its headquarters is being negotiated with Catalus Capital Management LLC, which will purchase the facility for USD34.7 million in cash.
Including real estate broker and closing costs, as well as holdbacks and a USD21.7 million mortgage on the facility, Verseon expects to net USD9.5 million of net proceeds from the sale-leaseback.
Shareholder approval is needed for the sale-leaseback, since it involves a company asset disposal.
On Thursday, Verseon said, in order to enable the directors of the company to enter into a sale-leaseback of the facility and to consider options available to the company, the resolution relating to the sale-leaseback will remain on the agenda for the annual general meeting, the AIM-listed company said.
The vote will proceed on the basis that the terms of the final sale-leaseback agreement will be materially similar or better than those announced on Wednesday, Verseon said.
The stock was trading 3.0% lower in London on Thursday at 8.00 pence a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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