Concordia (CXRX) Says CEO Thompson Sold Stock as Part of Margin Call; Comments on Pernix Therapeutics (PTX) M&A Chatter

August 22, 2016 5:02 PM EDT

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Concordia International Corp. (Nsdaq: CXRX) stated that Concordia's Chairman and Chief Executive Officer Mark Thompson was notified earlier today of the sale of 505,000 of his shares as part of a margin call.

These shares were not granted to Mr. Thompson as compensation. The shares were pledged to secure loans made to Mr. Thompson, and the sales terms were agreed upon, prior to the Company's April 21, 2016 announcement that it had formed a Special Committee to evaluate strategic alternatives. The financial institution executed the share sale after Concordia's common shares declined below a certain market price. Mr. Thompson continues to hold 1,620,251 shares of Concordia.

"It is with great regret that I have been forced to sell shares in Concordia," said Mark Thompson, Chairman and Chief Executive Office of Concordia. "Since founding Concordia three years ago, I participated in the initial equity offering and two subsequent financings and invested further last fall. This sale in no way diminishes my confidence in Concordia's business and prospects."

Concordia's senior management team is currently in a blackout period until the conclusion of the review of strategic alternatives and cannot proactively sell or buy shares at this time.

Concordia also commented today on media reports that it had acquired Pernix Therapeutics (Nasdaq: PTX). Concordia has not made a bid for, nor acquired Pernix Therapeutics and is not involved in any discussions about any type of transaction with Pernix Therapeutics.

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