Unilife Medical Solutions Amends Merger Implementation Agreement With Unilife USA

Published: 04-Nov-2009

To facilitate the proposed redomiciliation of the Unilife group in the USA

Unilife Medical Solutions (Unilife Australia) has entered into a merger implementation agreement with Unilife Corporation (Unilife USA) to facilitate the proposed redomiciliation of the Unilife group in the US.

The company has stated that the board established a consolidation ratio that provided a level of security against any decline, which might occur in both the Australian dollar exchange rate and the Unilife share price.

Thus, it was originally resolved that upon implementation of the proposed transaction, Unilife Australia's issued capital would be effectively consolidated by adopting a ratio of 12:1 that would provide the desired level of flexibility to meet NASDAQ minimum price policies and satisfy expected investor requirements in the United States.

However, the rise in the share price of Unilife Australia, and its subsequent stabilisation, coupled with the rise in the Australian dollar’s exchange rate versus the US dollar, has resulted in the Unilife board deciding to target a higher US dollar listing price and to revise the consolidation ratio adopted under the merger implementation agreement.

Accordingly, the board has now resolved to adopt a 6:1 ratio to effectively consolidate the share capital upon the redomiciliation of the Unilife group.

As a result, Unilife Australia and Unilife Corporation have amended the Merger Implementation Agreement to reflect the new consolidation ratio.

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