ImmunoPrecise Antibodies Ltd. is acquiring ModiQuest Research BV for approximately C$10.6 million.
Approximately C$3.8 million will be paid in cash, another C$3.8 million via the issue of 6,622,807 shares and C$3.0 million in deferred payments over three years.
ImmunoPrecise will make the deferred payments in three equal installments of cash and equity.
The company expects to finance the cash portion of the purchase price using a convertible debt instrument.
ImmunoPrecise will appoint one of the principal shareholders of ModiQuest to its board of directors. The agreement requires ModiQuest founder and CEO Jos Raats to enter into a three-year management contract, providing a minimum of 60% full-time employment.
The companies expect to carry out due diligence until Feb. 15, 2018 and complete the transaction by Feb. 28, 2018.
ImmunoPrecise primarily supplies custom antibodies for research and development, and ModiQues specializes in the generation of monoclonal antibodies against difficult target antigens.