* Says ends lease agreement with HEP Davis Springs
* Says saves $14.5 mln in future payment obligations
* Says to issue 1.25 mln shrs as part of deal
April 16 (Reuters) - Canada's Akela Pharma Inc said it agreed with HEP Spring Davis to terminate its lease on a Texas property, eliminating future payment obligations of $14.5 million.
Akela would make certain additional undisclosed payments, release all funds from an associated letter-of-credit and issue 1.25 million shares as part of the deal on the property in Austin, it said in a statement.
The company is continuing to divest non-core assets including international operations, Akela Pharma said.
The lease termination would help the company restructure and re-focus efforts and finances back to the clinical trial of its cancer pain drug, Fentanyl Taifun, Akela said.
The company is also working towards restarting the Japanese clinical study of Fentanyl Taifun through its Japanese partner Teikoku Seiyaku Inc and the efficacy study in Europe.
Shares of the company closed at 12.5 Canadian cents Friday on the Toronto Stock Exchange.
(Reporting by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair)
(aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5828; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))
Keywords: AKELAPHARMA/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Says saves $14.5 mln in future payment obligations
* Says to issue 1.25 mln shrs as part of deal
April 16 (Reuters) - Canada's Akela Pharma Inc said it agreed with HEP Spring Davis to terminate its lease on a Texas property, eliminating future payment obligations of $14.5 million.
Akela would make certain additional undisclosed payments, release all funds from an associated letter-of-credit and issue 1.25 million shares as part of the deal on the property in Austin, it said in a statement.
The company is continuing to divest non-core assets including international operations, Akela Pharma said.
The lease termination would help the company restructure and re-focus efforts and finances back to the clinical trial of its cancer pain drug, Fentanyl Taifun, Akela said.
The company is also working towards restarting the Japanese clinical study of Fentanyl Taifun through its Japanese partner Teikoku Seiyaku Inc and the efficacy study in Europe.
Shares of the company closed at 12.5 Canadian cents Friday on the Toronto Stock Exchange.
(Reporting by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair)
(aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5828; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))
Keywords: AKELAPHARMA/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.