VANCOUVER, March 30 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation announced today that it has extended the closing of the spin-out of Tekmira Pharmaceuticals Corporation ("Tekmira") from March 31, 2007 to April 30, 2007 at the request of the group that will be investing ("Investor Group") approximately $5.6 million in INEX as part of the transaction.
The Investor Group has requested the extension as they work to complete their final due diligence as part of the spin-out transaction.
Sheldon Reid, representing the Investor Group, stated that the Investor Group are working with INEX to close the transaction on April 30, 2007. "Given the recent progress at INEX, we require an additional month to complete our diligence in order to close the transaction."
Timothy M. Ruane, President and Chief Executive Officer of INEX, said, "We will continue to work with the Investor Group to facilitate the completion of their diligence. Our successes in the past few months, including the announcement of the Alnylam Pharmaceuticals alliance and the completion of an equity offering, have resulted in the Investor Group requiring additional time to complete their diligence."
On September 20, 2006 shareholders of INEX voted 99.3% in favour of spinning out all of the Company's technology, products, cash and partnerships into Tekmira. INEX has also received all of the necessary court approvals to successfully complete the spin-out.
Highlights of the spin-out include transferring to Tekmira:
- All of INEX's pharmaceutical assets including all intellectual
property and product rights;
- All of INEX's cash;
- INEX's pharmaceutical partnerships with Hana Biosciences, Inc.,
Alnylam Pharmaceuticals, Inc., Aradigm Corporation and Esperion
Therapeutics, Inc., a division of Pfizer Inc.
All of the Tekmira shares will be distributed to INEX common shareholders and INEX's current management team and employees will join Tekmira in the same positions they occupy in INEX. Concurrent with the spin-out of Tekmira, INEX will consolidate its commons shares on the basis of two current common shares for one new common share.
The completion of the spin-out of Tekmira will allow INEX, having no pharmaceutical assets, to complete a financing with the Investor Group. The Investor Group will invest up to $5.6 million in INEX by way of convertible debentures. Upon conversion of the debenture following the completion of the reorganization, the Investor Group will hold 100% of non-voting shares in INEX and 80% of the total number of shares outstanding. Therefore, current INEX common shareholders will own 20% of the equity of INEX and 100% of the Tekmira shares. The Investor Group plans to raise additional capital and acquire a new business for INEX. The money received by INEX as part of the corporate reorganization will be paid to the previous holders of INEX's convertible debt as per the note purchase and settlement agreement announced June 20, 2006.
Additional information on the Tekmira spin-out can be found in an information circular dated August 18, 2006 and filed on www.sedar.com.
INEX is a Canadian biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. Further information about INEX and this news release can be found at www.inexpharm.com.
Forward Looking Statements
There are forward-looking statements and information contained herein that are not based on historical fact, including without limitation statements containing the words "believes," "may," "plans," "will," "estimate," "continue," "anticipates," "intends," "expects," and similar expressions, and the negative of such expressions. Such forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements and information. Such factors include, among others, INEX's stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market INEX's products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or information contained herein to reflect future results, events or developments, except as required by law.
INEX's common shares are traded on the Toronto Stock Exchange under the trading symbol "IEX".
CONTACT: Contacts for Inex Pharmaceuticals Corporation: Investors: Ian Mortimer, Vice President, Finance and Chief Financial Officer, Phone: (604) 419-3200; Media: Karen Cook Boas, James Hoggan & Associates Inc., Phone: (604) 739-7500, Email: firstname.lastname@example.org
Inex Pharmaceuticals Corporation