June 15, 2016 / 11:17 AM / in 2 years

BRIEF-Aegerion pharmaceuticals, Qlt Inc agree to strategic merger

June 15 (Reuters) - Aegerion Pharmaceuticals Inc :

* Aegerion Pharmaceuticals and QLT Inc. agree to strategic merger

* Each outstanding share of Aegerion common stock will be exchanged for 1.0256 shares of QLT common stock

* Broad-based investor syndicate to vote in favor of merger and provide concurrent financing of approximately $22 million

* QLT plans to change its name upon closing of proposed transaction to Novelion Therapeutics Inc

* QLT’s common shares will trade on Nasdaq global select market and Toronto stock exchange

* Assuming completion of proposed merger by end of Q3 of 2016, Novelion is expected to have an unrestricted cash balance of over $100 million

* Proposed transaction has been approved by boards of directors of both companies

* Aegerion’s CEO, Mary Szela, will serve as CEO of Novelion following close of transaction

* $22 million investment would be funded immediately prior to deal close, expected to provide Novelion with additional capital to support operations

* As result of structure of deal, repayment obligation with respect to co’s outstanding convertible notes will not be triggered

* Broad-based investor syndicate to buy about $22 million in shares of QLT common stock for $1.76 per share

* After completion, QLT shareholders to own about 67 percent, current Aegerion shareholders to own about 33 percent Novelion’s shares

* Following close of transaction, Novelion is expected to have its principal headquarters in Vancouver, British Columbia

* Under terms of merger agreement, Aegerion will become wholly-owned indirect subsidiary of QLT

* Aegerion, QLT have entered into a loan agreement under which QLT agreed to loan Aegerion up to $15 million for working capital

* Board of Novelion will be comprised of ten members, including four QLT designees, four Aegerion designees and two shareholder representatives

* Board of directors of Novelion will also have one member from Broadfin Capital and other from Sarissa Capital

* Sarissa Capital also has right to designate an additional director to Novelion board for a limited period of time Source text for Eikon: Further company coverage:

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