Reiterates Going Concern Opinion to Comply with NASDAQ Marketplace Rule 4350(b)(1)(B)
WAYNE, Pa., May 11 /PRNewswire/ -- Encorium Group, Inc. (Nasdaq: ENCO), a full service multinational contract research organization (CRO) that provides design, development, and management capabilities for clinical trials and patient registries to many of the world's leading pharmaceutical companies, today announced that it has entered into two non-binding letters of intent ('LOI') with respect to its U.S. business and its wholly owned European subsidiary, Encorium Oy.
The first LOI involves the sale of the assets of Encorium Group, Inc., USA, the Company's U.S. business. The Company has signed a non-binding LOI with a full-service internationally based contract research organization for an undisclosed price.
The second LOI involves the sale of the Company's wholly owned subsidiary Encorium Oy. The Company has signed a non-binding LOI with a leading full-service clinical research organization based in the United States and with operations globally.
Terms of both agreements remain confidential and the closing of each sale is subject to the completion of due diligence, execution of definitive agreements, and the fulfillment of certain closing conditions, including, with respect to the sale of Encorium Oy, Stockholder approval. Although the terms of the transactions are not yet definitive, it is not currently expected that distributions to stockholders will result in a substantial premium, if any, to the current stock price.
Dr. David Ginsberg, Encorium Group's Chief Executive Officer, commented, 'Over the last several months we have been actively pursuing opportunities to enhance and maximize stockholder value. Encorium's management and Board have determined a sale of our assets was the best strategy to pursue. Both purchasers are well-respected organizations with strong management teams and therapeutic and regulatory expertise and we believe that transferring our assets in these two transactions is in the best interest not only for our stockholders, but for our customers and employees as well.
