MediciNova Inc. (MNOV) said that it has set December 17 as the election deadline for the Avigen Inc. (AVGN) shareholders to make an election with respect to the merger consideration to be received in the proposed acquisition by MediciNova of Avigen.
Previously, the amount per share to be received by Avigen stockholders initially was estimated at about $1.24 per share with about $1.19 per share to be paid at the closing of the merger and about $0.05 per share to be paid on or around June 30, 2010.
However, Avigen and MediciNova have identified certain additional liabilities of approximately $400,000. These amounts are expected to be deducted from the second payment consideration and, as a result, the second payment consideration is now estimated to be no more than about $0.04 per share.
The transaction is expected to close in December 2009, subject to approval of Avigen's stockholders and approval of MediciNova's stockholders as well as other customary closing conditions.
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