On April 30, 2004, Hemosol Inc. completed a reorganization under a plan of arrangement involving its principal shareholder MDS Inc., which allowed Hemosol’s business to receive a cash infusion of $16 million for a significant portion of its unused tax losses and other tax assets.  As part of the reorganization, Hemosol effectively transferred ownership of its business to newly created, publicly held Hemosol Corp. and MDS effectively transferred ownership of its Ontario clinical laboratory services business to LPBP Inc., as Hemosol Inc. was renamed under the arrangement.  As a result of the arrangement, Hemosol Inc. shareholders retained 93% of the business of Hemosol through their holding of shares of Hemosol Corp. and Hemosol Inc. shareholders (other than MDS) received a 0.44% equity interest in the Ontario clinical laboratory business of MDS through their holding of Class A shares of LPBP.  The reorganization also involved an assignment of Hemosol's credit facilities extended by The Bank of Nova Scotia.

Hemosol was represented by Davies Ward Phillips & Vineberg LLP, with a team that included Arthur Shiff, Vincent Mercier, Kenneth Klassen, Peter Hong, Christian Gauthier, Daniela Liscio and Ivana Gotzeva (corporate/securities), Colin Campbell (tax), Scott Hyman (banking), Gabriella Lombardi (real estate), Luis Sarabia (litigation) and Lori Cornwall (competition)...