At Acasti's Annual and Special Meeting, held on June 27, 2013, the Corporation's disinterested shareholders (excluding Neptune and non-arm's length parties to Neptune) voted in favour of becoming royalty free and paying in advance all future royalties owed under the License Agreement through the issuance of shares to Neptune. As required, Acasti also received approval from the TSX Venture Exchange.
The value of the royalty prepayment, which was confirmed by an independent valuation expert using the pre-established prepayment formula set forth in the License Agreement, is approximately $15.5 million and was paid through the issuance of 6,750,000 Acasti Class "A" common shares to Neptune. The prepayment increases Neptune's equity participation in Acasti from approximately 57% to approximately 60%.
Being royalty free allows Acasti to preserve cash of at least $700,000 annually, which was the current minimum royalty due under the License Agreement. It should also bring more flexibility and strength in negotiating deals with potential business partners.
CONTACT: Acasti Contact: Xavier Harland Chief Financial Officer +1.450.687.2262 email@example.com www.acastipharma.com Howard Group Contact: Dave Burwell (888) 221-0915 firstname.lastname@example.org www.howardgroupinc.com
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