ANI Pharmaceuticals (NASDAQ:ANIP) Canada Inc., a subsidiary of ANI Pharma (NASDAQ:ANIP), has struck a deal to sell its former manufacturing facility in Oakville, Ontario, to 1540700 Ontario Limited. The agreement, which was entered into on February 16, 2024, places the property's value at approximately 19.2 million Canadian dollars, or around 14.2 million US dollars based on current exchange rates.
The terms of the sale require the buyer to make an initial deposit of 5% of the purchase price, which amounts to roughly 710,000 US dollars, within two business days of the agreement's signing. The buyer also has a five-business-day due diligence period to review the property. Should the due diligence condition be met or waived, an additional 5% deposit is required, with the remaining balance due at the transaction's closing.
The sale is expected to close by the end of March 2024, assuming all customary termination conditions are met and the property does not sustain material damage before the closing date. In the event that the transaction falls through due to the buyer's due diligence or ANI's default, the buyer's deposit will be fully refunded. However, if the buyer defaults, ANI will retain the deposited amounts.
The property is being sold on an "as is" basis, with the agreement outlining standard closing conditions, indemnification obligations, and limited representations and warranties.
This transaction represents a notable step for ANI Pharmaceuticals as it divests from its Oakville location, with the specifics of the deal outlined in a recent SEC filing. The sale could potentially contribute to the company's strategic realignments or capital allocation plans, although the exact implications for ANI Pharma's operations and financials are not detailed in
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