Patch to start selling 35% of stake in Pharmaxis

New York, Nov. 21 - Patch International Inc. said it will begin selling the 35% of its stake in Pharmaxis Ltd. that is not subject to sale restrictions.

The Vancouver, B.C.-based oil and gas producer said it will sell the 3.92 million shares in "an orderly manner" to maximize its return. Transactions may include pre-arranged block sales or private sales and could take four to 12 months to complete.

Mandatory restrictions on Patch's sales of Pharmaxis stock expired on Nov. 10 but in order to assist Pharmaxis' recent stock sale Patch entered into a voluntary lock-up agreement with CIBC World Markets Corp. Under the agreement, Patch cannot sell 65% of its stake - 7.28 million shares - until 90 days from Nov. 9 without the consent of CIBC.

After the close on Nov. 7, Pharmaxis priced a follow-on offering of 1.3 million American Depository Shares at $24.16 per share plus 19.9 million ordinary shares at A$2.20.

CIBC World Markets Corp. was bookrunner for the ADS offering and Wilson HTM was bookrunner of the offering of ordinary shares, which was increased from 17.5 million ordinary shares.

Pharmaxis is a Frenchs Forest, New South Wales, Australia, specialist pharmaceutical company.

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