-- Lawsuit by EBS is without merit and part of its overall strategy to cripple PSC, force PSC to sell its business without getting shareholder approval and to provide EBS with cover for failing to provide funding to
PSC. -- PSC will vigorously defend itself and continue to pursue its business strategy of obtaining FDA approval for its lead vaccine product, FluBlok,
and seeking additional federal and third party funding.
MERIDAN, Conn., July 10 /PRNewswire/ -- Emergent BioSolutions, Inc.
(NYSE: EBS) has instituted a lawsuit related to its funding of Protein
Sciences Corporation (PSC) and EBS's proposed transaction to acquire PSC's
business. This lawsuit is nothing more than an attempt to destroy and
discredit PSC and its senior management team in order to allow EBS to avoid
-- its contractual commitment to fund PSC;
-- a vote by PSC's shareholders on the transaction;
-- EBS's agreement to allow PSC to have until December 31, 2008 to repay a
$10,000,000 loan; and
-- payment by EBS of a reverse break-up fee of $1,500,000.
PSC and its senior management team vehemently and categorically deny any substantive wrongdoing and will vigorously defend this lawsuit.
In connection with the proposed transaction to acquire PSC's business,
EBS agreed to make loans to PSC in order to fund PSC's operations until the
closing of that transaction. This funding was an integral part of the
proposed transaction as PSC advised EBS that PSC would need between
$15,000,000 and $18,000,000 of funding through June 30,2008 as PSC had
incurred and would continue to incur significant financial obligations
related to its now pending Biologics Licensing Appli
|SOURCE Protein Sciences Corporation|
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