Osteologix Inc. (OTC:OLGX) decided to pull up stakes in the U.S. and remove its stock from public trading.
In an effort to cut costs, the company plans to deregister its stock on the NASDAQ exchange and close its U.S. office in Glen Allen, Va., in order to consolidate into its Dublin, Ireland-based subsidiary Osteologix Holdings Ltd.
The moves should be completed within the next three to four months, but are still subject to shareholder approval, Osteologix said. The company proposed that its shareholders would receive Osteologix Holdings stock in exchange for their OLGX shares.
Osteologix determined that the expense and efforts required for Securities & Exchange Commission compliance and reporting outweigh the benefits for the company and its shareholders "in light of the history of the low trading volume of the company’s common stock on the over-the-counter exchange and the resulting very limited liquidity in shares of the company’s common stock," the company said in prepared remarks.
The moves are an attempt to increase the value of the the company’s licensing agreement for its strontium malonate-based NB S101 post-menopausal osteoporosis treatment with France-based Servier Research Group, according to the company. Osteologix expects the Servier deal to allow it to pay out dividends to its shareholders in late 2011. The company is also looking for development partners for its U.S. drug development program.
CEO Philip Young will remain only as a board member of the Irish subsidiary as of part of the consolidation. David Flynn will serve as managing director of the company; he is CEO of business development consulting firm EVA Consulting Ltd.
The company foresees its stock being traded under the symbol OLGX on the Pink Sheets quotation service until it completes the downsizing.