BetterLife plots acquisition of Altum

Canada-based BetterLife Pharma (CNSX: BETR) yesterday announced that it has secured "hard" lock-up agreements from shareholders of Altum Pharmaceuticals representing 67.12% of the outstanding common shares of the Canadian biotech.

BetterLife intends to approach the board of Altum to discuss a "merger of equals" transaction to take place by way of a Plan of Arrangement. If Altum and BetterLife are not able to agree on a transaction, BetterLife intends to launch a take-over bid to acquire all of the common shares Altum. Under the terms of the proposed acquisition, BetterLife would issue 4.582 common shares of BetterLife for each Altum common share, which represents approximately $36.1 million in value based on the proposed share exchange.

The proposed transaction to acquire all the shares of Altum is subject to the receipt of all required approvals and with BetterLife being satisfied with the results of its due diligence. BetterLife has reviewed published scientific claims and materials available publicly on Altum's pipeline of products.