-- Eliminated the Company's long term debt and reduced total liabilities by approximately $6 million in 2012. This was achieved through the sale of the Company's Analytical Services and Bioanalytical Services Divisions.-- On December 10, 2012, sold the assets related to its Bioanalytical Services Division for a total purchase price consideration of $7,100,220 consisting of $5,400,000 paid in cash at closing, $600,000 held in escrow until March 10, 2014 and an additional payment of $1,100,220 received subsequent to year end that related to the adjusted revenues of the Bioanalytical Division that exceeded $6,000,000 during the calendar year ending December 31, 2012.-- Following the repayment of the Company's debts and the sale of the Company's operating business units; the Board of Directors ("Board") is undertaking a strategic review of the company's remaining assets. In conjunction with this review, the Board has initiated discussions with investment banking groups and other external parties. The outcome of this review remains uncertain at this time, and the Board will update shareholders if and when any progress is made.-- On April 23, 2012, sold the assets related to its Analytical Services Division for total consideration of $300,000. The terms of the transaction also provide Warnex with the right, subject to certain conditions, to terminate the lease for its Laval, Quebec facilities, which are owned by an affiliate of NEOPHARM, prior to the current expiry date of such lease.-- On December 27, 2012, the Company announced that its common shares began trading on the NEX on a post one-for-four share consolidation basis under the symbol WNX.H.-- Subsequent to year end, the Company announced that Mr. Marc Lebel, Mr. Louis Lacasse and Mr. Patrice Hugo have agreed to resign as Directors of Warnex. Furthermore, Mr. Sean Karamchandani has been appointed as Director and will replace Mr. Lebel as the Company's interim Chief Executive Officer until further notice.
"On behalf of the Warnex Board, I would like to sincerely thank Marc, Louis and Patrice for their longstanding commitment to the Company, and for their guidance and many contributions over the years. We wish them continued success for the future," remarked Michael Singer, Chairman of Warnex. "Furthermore and subsequent to the sale of the Bioanalytical Services Division, the Board has undertaken specific measures aimed at preserving shareholder capital including the transfer of all administrative employees to the purchaser thereby resulting in a material reduction in operating expenditures going forward, pending a final outcome related to the ongoing strategic review."
Consolidated revenue for the twelve-month period ended December 31, 2012, amounted to $9.0 million compared to $21.3 million in 2011. Subsequent to the sale of assets related to its Bioanalytical Division on December 10, 2012, Warnex no longer had any operating business units.