Cybear, Mediconsult go public with merger plans
Cybear Group (part of Andrx Corporation) and Mediconsult.com have announced plans to merge in a stock-for-stock transaction. Under terms of the agreement, Mediconsult shares will be exchanged for Cybear shares at a ratio of 0.143 shares of
Cybear Group (part of Andrx Corporation) and Mediconsult.com have announced plans to merge in a stock-for-stock transaction. Under terms of the agreement, Mediconsult shares will be exchanged for Cybear shares at a ratio of 0.143 shares of Cybear stock for each share of Mediconsult. Subject to regulatory and shareholder approval, the firms expect to complete the merger in the second quarter. In the meantime, Cybear has agreed to provide interim financing to Mediconsult and to restructure its own company to reduce operating expenses. In a completely separate transaction, Cybear and Mediconsult's Physicians' Online Internet portal have entered into a strategic alliance.
In related news, Mediconsult plans to appeal Nasdaq's decision to delist Mediconsult's stock for not meeting the minimum net tangible assets requirement. Whether Mediconsult's potential delisting will affect the Cybear deal remains an open question. At press time, both Cybear and Mediconsult were trading well under $1 per share.