June 15 (Reuters) - Aegerion Pharmaceuticals Inc AEGR.O :
* 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
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Further company coverage: AEGR.O