ANNAPOLIS, Md., April 13, 2016 /PRNewswire/ -- PharmAthene, Inc.
(NYSE MKT: PIP) reported today that the U.S. Bankruptcy Court for
the Southern District of New York
approved a reorganization plan that lays out the terms and
conditions under which SIGA Technologies, Inc. will exit from
bankruptcy, effective April 12, 2016.
The plan was negotiated between SIGA and the Statutory Creditor's
Committee of which PharmAthene is a member. PharmAthene has
received a $5 million initial payment
from SIGA. The payment is creditable against final satisfaction of
PharmAthene's claim of approximately $205
million plus interest and is not refundable.
Under the plan, PharmAthene's judgment will be satisfied no
later than October 20, 2016 by SIGA
in one of the following ways, to be chosen by SIGA:
- Payment in full in cash of the unpaid balance plus interest
that will accrue at 8.75% after Plan approval; or
- Delivery to PharmAthene of 100% of SIGA's common stock; or
- Such other treatment as may be mutually agreed upon by SIGA and
PharmAthene and approved by the Court
In the event that SIGA pays PharmAthene cash in full and barring
any unexpected material events, PharmAthene currently expects that
it will distribute at least 90% of the after tax net cash proceeds
to its shareholders. The timing and form of distribution will
depend upon PharmAthene's analysis of its current situation,
applicable corporate statutes related to distributions and the
economic consequences to its shareholders of any such distribution.
In addition to the distribution of these cash proceeds, PharmAthene
intends to seek M&A or other partnering transactions to
maximize the value of its remaining assets and anthrax vaccine
programs. PharmAthene will work to develop a transition plan for
managing and operating SIGA as a separate business in the event
SIGA decides to satisfy the judgment by delivering 100% of SIGA's
stock to PharmAthene.
About PharmAthene
PharmAthene is a biodefense
company engaged in the development of next generation medical
countermeasures against biological and chemical threats. The
Company's development portfolio includes two next generation
Anthrax vaccines that are intended to improve protection while
having favorable dosage and storage requirements compared other
Anthrax vaccines.
Forward-Looking Statement Disclaimer
Except for
the historical information presented herein, matters discussed may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are subject
to certain risks and uncertainties that could cause actual results
to differ materially from any future results, performance or
achievements expressed or implied by such statements. Statements
that are not historical facts, including
statements preceded by, followed by, or that include the
words "potential"; "believe"; "anticipate"; "intend"; "plan";
"expect"; "estimate"; "could"; "may"; "should"; "will"; "project";
"potential"; or similar statements are forward-looking statements.
Risks and uncertainties include risks associated with our ability
to collect a money judgment from SIGA judgment; risks relating to
the timing of payments, if any, under the SIGA litigation; our
ability to make distributions of a substantial portion of the cash
proceeds receive from SIGA; the timing, amount and form of such a
distribution; risks relating to our continuing ability to recognize
cost reductions; funding delays and/or reductions or elimination of
U.S. government funding and/or non-renewal of expiring funding;
risks associated with our net operating loss carryforwards, or
NOLs; risks associated with accomplishing any future strategic
partnerships or business combinations; and other risks detailed
from time to time in PharmAthene's Forms 10-K and 10-Q under the
caption "Risk Factors" and in its other reports filed with the U.S.
Securities and Exchange Commission. PharmAthene disclaims any
intent or obligation to update these forward-looking statements
other than as required by law.
Copies of PharmAthene's public disclosure filings are available
on our website under the investor relations tab at
www.PharmAthene.com.
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SOURCE PharmAthene, Inc.