Nutraceutical focus fails for Forbes Medi-Tech
This article was originally published in The Tan Sheet
Executive Summary
The Canadian firm throws in the towel on competing in the dietary supplement market with an agreement to sell its Reducol nutraceutical business to ingredient supplier Marco Hi-Tech JV LLC for $1.4 million. Vancouver, B.C.-based Forbes Medi-Tech said July 13 that after the deal closes, it plans to distribute the net proceeds to shareholders and close its doors. The firm sold its drug development business in 2008 to concentrate on the nutraceutical market, but with limited capital impeding acquisitions the board of directors decided to liquidate the company, President and CEO Charles Butt said (1"The Tan Sheet" Sept. 1, 2008, In Brief). Forbes Medi-Tech said it considered purchase proposals for the whole company but decided selling the Reducol business separately would yield larger proceeds. It expects shareholders to receive between 8 cents and 13 cents per share