Golf Trust, drugmaker to merge

The remnants of a Charleston company that once owned several dozen golf courses are set to become part of a Texas pharmaceutical business.

At a special meeting of shareholders Monday, investors in Golf Trust of America Inc. voted overwhelmingly to approve a previously announced merger with Pernix Therapeutics Inc.

The owners of about 78 percent of Golf Trust's outstanding shares cast votes. Of those, more than 99 percent were in favor of the Pernix transaction.

The deal is expected to be finalized today.

The merger will enable privately held Pernix to become a public company by taking over Golf Trusts' listing on the American Stock Exchange.

"We are excited and confident as we enter the realm of publicly traded companies," said Cooper Collins, chief executive officer of Pernix.

Shares of the drug firm are expected to start trading Wednesday under the symbol PTX. The combined company will be renamed Pernix Therapeutics Holdings Inc. Its headquarters will be in the Houston area.

"We believe that Pernix has a bright future as a fast-growing specialty pharmaceutical company with a debt-free balance sheet and attractive levels of historical profitability," said Michael Pearce, chief executive officer of Golf Trust, who is to become chairman of the combined business.

Under the terms of the merger, Pernix investors will control 84 percent of Golf Trust's common stock. Existing shareholders of the Charleston company will own the remaining 16 percent.

In addition to the stock listing, Pernix also gets access to the roughly $6.7 million in cash that was in Golf Trust's bank account at the end of 2009.

The deal spells the end of an extended final chapter for Golf Trust, once considered a promising publicly traded business.

The company was formed in Charleston in 1997 to invest in high-end courses all over the country. But within several years, the industry had become overbuilt while participation in the game stagnated. Course values suddenly plummeted.

Golf Trust decided in 2001 to wind down its business by selling off its 40 or so properties -- many at a loss -- and distributing the proceeds to shareholders. But about three years ago, at the urging of a newly installed board of directors, investors repealed the liquidation to allow management to seek other opportunities, such as finding a buyer.

Golf Trust shareholders who held onto their stock now own part of a small drug company with products that target pediatrics and primary care, with an emphasis on cough and cold relief. The remedies are sold under the names Aldex, Brovex, Hylatopic, Pediatex, ReZyst, QuinZyme and Z-Cof.

Shares of Golf Trust were unchanged Monday, closing at $1.90.

Reach John McDermott at 937-5572 or jmcdermott@postandcourier.com.