Arris to acquire Khepri in $20-$22 mil. deal; hopes to lower burn rate 25%.

Executive Summary

ARRIS TO ACQUIRE KHEPRI FOR $20-$22 MIL., Arris Corp. announced Nov. 8 after signing a definitive agreement with Khepri Pharmaceuticals. The signing culminates talks initiated by Arris in the summer of 1994. Arris will issue 1.5 mil. shares of stock to Khepri shareholders in December, when the acquisition is expected to have its first-stage closing. At that time, the issued shares will be subject to contractual lock-up: approximately 1 mil. shares may not be sold to the public until Jan. 1, 1997. In the second stage of the closing, an additional 525,000 shares or their cash equivalent will be issued on Dec. 30, 1996.