Paladin Labs Inc.(PLB.TO) announced that it has acquired all the outstanding shares ViRexx Medical Corp.(VIR.TO, REX).
Paladin paid $1.25 million payable to existing ViRexx creditors. In addition, former ViRexx shareholders could receive a payment of up to $2.50 million, if certain conditions are met before December 31, 2009.
As a result of this transaction, Paladin will be spending approximately $2 million - $2.5 million in R&D in 2009 on the Chimigen platform and partnering activities. In addition, Paladin's non-capital losses and investment tax credits available to offset future taxable income has increased by a minimum of $28 million.
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