Entelos says finalizes initial amount for Iconix Biosciences buyout

LONDON (Thomson Financial) - Life sciences company Entelos Inc said it has finalized the working capital adjustment to the initial purchase amount for the acquisition of California-based Iconix Biosciences Inc, which closed on Aug 31.

Entelos had previously announced that the initial amount would be the issue of up to 12.78 mln Entelos shares but the working capital adjustment has reduced this payment to 9.28 mln shares.

Based on the closing price of 32.5 pence per share on Aug 31, the initial amount is valued at about 6.1 mln usd and about 4.5 mln usd at the closing price of 23.5 pence per share on Nov 6, the company said.

The merger agreement also provided for a potential maximum earn out payment of 25 mln usd adding a portion of this payment, if any, will become payable on Aug 31 2008. The remainder of any earn out payment will become payable thereafter based on the achievement of certain other milestones, it added.

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