Philom Bios Inc. hopes to improve liquidity with the sale of 442,963
Class A common shares.
John Cross, president of the Saskatoon agricultural inoculant company,
said investors told the board of directors early last year they wanted
improved liquidity of the company’s shares.
“And today we are happy to say we have found some of that liquidity and
have begun to maximize shareholder value,” Cross said.
PIC Investment Group Inc. has agreed to buy the shares from Hedley
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Technologies for $4 a share. The shares are approximately 14 percent of
Philom Bios’s 3.53 million outstanding shares.
MicroBio RhizoGen, a competitor in the inoculant business, offered
$2.75 per share last May, but was rebuffed by PBI shareholders. The
company consequently offered $5.25 per share later in October but that
deal fell through because of an unresolved lawsuit between Philom Bios
and Dow Elanco.
James Yuel, PIC president and principal shareholder, along with
ex-wife, Dorothy, said he believes Philom Bios is “poised for growth
and significant profit.”
Cross said he is pleased with the deal.
“PIC is a very successful Saskatoon based investment group and we look
forward to having them as an investor.”
He said the departure of Hedley, a company that invests in new and
emerging agricultural technologies, was not a blow to Philom Bios.
“They came on board six years ago,” he said.
“Some investors’ priorities change and we accept that. They have their
own reasons for moving on that do not have anything to do with the
health of our company.”
Yuel said he believes Hedley pushed to create liquidity in Philom Bios
so it could withdraw its investment.
“I see a lot of potential. If we can convince the board to start
providing some dividends from their profits and commit to reinvest in
research and marketing, I can see us holding our position there for a
long while to come.”
Yuel said he believes his company is now the single largest shareholder
in Philom Bios.
PBI produces the inoculants TagTeam, JumpStart and N-Prove.
