Warnex delays results and receives debenture default notice

Laboratory services firm Warnex has put back the release of its full year results and received a formal notice of default from the holder of its outstanding debentures.

The Canadian contract said yesterday that it will delay the publication of its 2011 financials – originally scheduled for March 30 – by ‘approximately one week’ in light of the departure of CFO François Jetté on March 23.

Warnex also announced that it has received a formal notice of default from the holder of its outstanding debentures requiring that the full repayment of CDN$882,095 be made by Warnex by no later than April 3.

In a statement issued yesterday Warnex said it “is in the process of setting up a one-year operating line of credit of up to CDN$2,000,000 with a financial institution which is to be used to repay its outstanding debentures and support working capital and general corporate purposes.”

Just yesterday Outsourcing-pharma.com reported that partiers interested in acquiring its remaining operating divisions – analytical services and bioanalytical services – are conducting due diligence.

What impact – if any - the delayed financials or the debenture default will have on any potential deals remains to be seen, but they have certainly made what are potentially Wanrex’ last few days on the Toronto Stock Exchange (TSX) a hectic time.