PharmaGap Inc. (TSX-V:GAP) is reducing its office and lab space, and giving its employees temporary layoffs, ahead of its licensing transaction with Clinical Value Corp.
The firm stated that it is trying to keep expenses down as it prepares to transfer assets to CVC. Rod Bryden, an investor in PharmaGap, owns CVC.
"We continue to meet with potential investors to participate in capital funding for CVC to implement the licensing transaction with PharmaGap,” he stated.
While the amount of time operations will be suspended was not specified, “it is likely that a number of weeks will be required to complete this transaction,” he stated.
The company said layoffs took effect Sept. 26 and it is also “reducing the office and lab space leased at 100 Sussex Dr. accordingly.”
Shares of PharmaGap closed 25 per cent lower on Wednesday, compared with the day before, after the news was announced. As of the close of markets, each share was worth 1.5 cents.