COLUMBIA, Md., Oct. 16 /PRNewswire-FirstCall/ -- Martek announced today that it has reached a settlement with the representative of the former stockholders of OmegaTech in ongoing litigation regarding the disputed contingent consideration associated with certain milestones included in the April 2002 merger agreement. In connection with the settlement, Martek will issue 341,061 shares of Martek common stock to the former stockholders of OmegaTech, which represents approximately one-half the amount of shares that would have been issued for the achievement of the regulatory milestone under the 2002 merger agreement. As part of the settlement, the litigation will be dismissed and Martek will receive a full release and discharge from any and all future claims by former stockholders of OmegaTech. As required by the 2002 merger agreement, Martek had been reserving 1.9 million shares in order to satisfy its potential purchase price obligations relative to the remaining milestones. Today's settlement for 341,061 shares eliminates the potential for any additional shares to be issued to the former OmegaTech stockholders.
Martek's payment of 341,061 shares to the former OmegaTech securities holders will result in the recognition of approximately $10 million of additional goodwill by Martek when the shares are issued. Martek has agreed to file a registration statement with the SEC to permit the resale of the shares and to maintain the effectiveness of the registration statement for a period of two years.
Martek Biosciences Corporation (Nasdaq: MATK) is a leader in the
innovation and development of DHA omega-3 products that promote health and
wellness through every stage of life. The company produces life'sDHA(TM), a
|SOURCE Martek Biosciences Corporation|
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