VANCOUVER, Feb. 22, 2013 /CNW Telbec/ - Akela Pharma, Inc. (the
"Corporation") has announced that its wholly owned subsidiary,
Formulation Technologies, LLC received a notice of default and that on
February 13, 2013, the Subsidiary also received a Notice of Disposition
of Collateral on Default from a secured creditor.
On December 13, 2012, Formulation Technologies, LLC d/b/a PharmaForm
(the "Subsidiary"), the primary operating entity of Akela Pharma, Inc.,
entered into a facility lease (the "Lease") with Alliance Diversified
Holdings LLC, a Delaware LLC, ("Alliance") for a facility located in
San Diego, California. In connection with the execution of the lease,
the Subsidiary entered into a Loan and Security Agreement with Biotech
Investment Group, LLC, a Delaware LLC, ("Biotech") relating to the
funding of certain tenant improvements, relocation costs, security
deposit, portions of rents related to the leased San Diego facility and
certain other cash needs. On December 31, 2012, the Corporation
defaulted on its interest payments due to its senior secured
creditors. Over the past several months, the Corporation, Biotech and
a senior secured creditor of the Corporation (collectively, the
"Parties") had been negotiating a transaction in an attempt to reach an
acceptable settlement of the default claims of the Corporation's senior
secured creditors and for the funding of future operations. While
several agreements by and amongst the Parties were executed in January
2013, the Parties were ultimately unable to reach an agreement on all
the issues and the intended results of the negotiations failed to
On February 5, 2013, the Corporation was notified that Biotech was
discontinuing discussions with the Corporation and the senior secured
creditor. On February 7, 2013, the Subsidiary was notified by Alliance
that the Subsidiary was in default of the Lease entered into on
December 13, 2012 between the Subsidiary and Alliance. On February 7,
2013, the Subsidiary was notified by Biotech as a result of being in
default of the Lease, the Subsidiary was in default of terms of the
Loan and Security Agreement dated December 13, 2012.
On February 13, 2013, the Subsidiary received a Notice of Disposition of
Collateral on Default (the "Notice") from Biotech. The Notice was
issued by Biotech as the Secured Party to the Loan and Security
Agreement between Biotech and the Subsidiary. The Subsidiary was also
notified that Biotech intended to foreclose and enforce is security
interest on the Collateral (as defined in the Loan and Security
Agreement between the Subsidiary and Biotech) which includes
substantially all the assets of the Subsidiary.
Upon the conclusion of these transactions, the Corporation does not
anticipate there to be any recovery for the shareholders or creditors
of Akela Pharma, Inc.
The Corporation has not made the required filings of the Corporation's
interim financial statements, management's discussion and analysis nor
the CEO and CFO certifications for the period ended September 30, 2012
and was placed on the list of delinquent filers. The Corporation's
securities remain under a cease trade order that was originally put in
place on November 23, 2012 by the Investment Industry Regulatory
Organization of Canada (IIROC). The Corporation voluntarily delisted
from the Toronto Stock Exchange on December 7, 2012.
About Akela Pharma, Inc.
Akela Pharma, Inc.'s common shares are not registered for trading on any
regulated exchange. There are approximately 32.4 million shares
This press release contains statements which may constitute
forward-looking information under applicable Canadian securities
legislation or forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1955. Such
forward-looking statements or information may include financial and
other projections as well as statements regarding the company's future
plans, objectives, performance, revenues, growth, profits, operating
expenses or the company's underlying assumptions. The words "may",
"would", "could", "will", "likely", "expect", anticipate", "intend",
"plan", "forecast", "project", "estimate" and "believe" or other
similar words and phrases may identify forward-looking statements or
information. Persons reading this press release are cautioned that such
statements or information are only expectations, and that the company's
actual future results or performance may be materially different.
Such forward-looking statements or information involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, events or developments to be materially different from
results, events or developments expressed or implied by such
forward-looking statements or information. Such factors include, among
others, the possibility that risks associated with requirements for
approvals by government agencies; the possibility that such government
agency approvals will not be obtained in a timely manner or at all or
will be conditioned in a manner that would impair our ability to
advance development; our dependence on suppliers, collaborative
partners and other third parties and the prospects and timing for
negotiating supply agreements, corporate collaborations or licensing
arrangements; our ability to attract and retain key personnel; and
other factors as described in detail in our filings with the Canadian
securities regulatory authorities at http://www.sedar.com.
In the event that any of these assumptions prove to be incorrect, or in
the event that we are impacted by any of the risks identified above, we
may not be able to continue in our business as planned.
For a complete discussion of the assumptions, risks and uncertainties
related to our business, you are encouraged to review our filings with
Canadian securities regulatory authorities, filed on SEDAR at http://www.sedar.com.
All forward-looking statements and information made herein are based on
our current expectations as of the date hereof and we disclaim any
intention or obligation to revise or update such forward-looking
statements and information to reflect subsequent events or
circumstances, except as required by law.
SOURCE AKELA PHARMA INC.