OTTAWA, ONTARIO--(Marketwire - June 21, 2010) - Chemaphor Inc. (TSX VENTURE: CFR), a wellness company focused on Natural Health Enhancer (NHE) products for animals and humans today announced that it has launched a stem cell regenerative therapy for pets and horses in Canada. Chemaphor will be offering this treatment through veterinarians and expects to generate revenues this year. Chemaphor has gained access to the exclusive marketing rights for this procedure in Canada through the acquisition of 7552882 Canada Inc., a private company. The ultimate licensor of this regenerative stem cell therapy is Vet-Stem, Inc. of California.
Paul Dick, CEO of Chemaphor, highlighted that "this is a fantastic opportunity to combine a novel, demonstrably effective treatment for suffering pets and their owners, while maintaining our focus on providing scientifically supported solutions to veterinarians and their patients. Prior to deciding on our first acquisition, we consulted with academic institutions, veterinarians, surgeons and other third parties in determining the fit of this opportunity with Chemaphor and its valued customers. We are delighted that we can now look towards implementing this procedure across Canada. Furthermore, this opportunity complements the Oximunol™ Chewables product commercialization program that, together with the ongoing program to commercialize a non-antibiotic feed additive for food animals, shows Chemaphor is putting in place a pipeline of NHE products for animal health".
David Hankinson, Chairman of Chemaphor added, "We are advancing our pipeline assertively while keeping an eye on potential value-creating opportunities in the hope of rewarding our investors, who have been tremendously patient with our product development timelines. This stem cell regenerative treatment is exciting and allows us to confirm to our shareholders that we are now a commercial organization, with a market approved therapy complemented by a pipeline of Chemaphor-owned products. Chemaphor's launch of a stem cell regenerative treatment in Canada allows us to build and foster relationships with veterinarians, with the knowledge that we have proprietary products that might be complimentary to that sales channel." Mr. Hankinson also added, "We hope to layer on additional products and recruit key people to support our commercial infrastructure and growth, transforming Chemaphor into a wellness company with products in development and, now, on the market."
The regenerative treatment being launched in Canada by Chemaphor is delivered by harnessing an animal's own stem cells taken from a small fat tissue sample, which Chemaphor will process at its laboratories in PEI, allowing many of the more than 10,000 veterinarians in Canada to deliver a procedure that assists in repairing damaged joints or ligaments through a regenerative process.
The purchase price paid by Chemaphor for its acquisition of all of the issued and outstanding shares of 7552882 Canada Inc. was 4,500,000 Chemaphor common shares having a value of $495,000, based on the closing price of Chemaphor Common Shares on the TSX Venture Exchange on June 18, 2010, the last closing price prior to closing of the acquisition. The Chemaphor shares issued to the shareholders of 7552882 Canada Inc. were placed into an escrow on closing and will be released in accordance with the following schedule: 30% on August 31, 2010, 30% on November 30, 2010, 25% on February 28, 2011 and 15% on the second anniversary of the closing of the acquisition.
Chemaphor, a wellness company, is committed to developing and delivering natural health enhancer ("NHE") products to humans and animals to assist in optimizing health and daily quality of life. Chemaphor is advancing NHE product candidates for the food animal market, companion animal market and various, potential human applications. More information can be found at www.chemaphor.com.
Forward Looking Statements
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with Chemaphor's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to Chemaphor or its management. The forward-looking statements are not historical facts, but reflect Chemaphor's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Chemaphor assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The acquisition of 7552882 Canada Inc. remains subject to TSX Venture Exchange approval.