VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jun 12, 2008 -- Inflazyme Pharmaceuticals Ltd. (NEX: IZP.H) announced today that it has appointed Mr. Rick Doman as the interim President and CEO effective June 30, 2008. Mr. Doman was formerly President, CEO and Director of Doman Industries Ltd. and Western Forest Products. Mr. Doman will assist the Company in changing direction to target emerging business opportunities in the resource sector.
Mr. Jeremy Curnock Cook, Chairman of the Board, said, "I welcome Mr. Rick Doman as interim President and CEO of Inflazyme. Mr. Doman has been a force in the forestry sector and with his leadership we look forward to working with him to focus the Company on the resource sector." "I am very excited to be joining Inflazyme, and I am committed to bringing in new ideas to help provide opportunities to create shareholder value," said Mr. Rick Doman.
Mr. Michael Liggett is the current CFO of the Company and he will remain as CFO on a consulting arrangement for up to six months.
The Company also announced a proposed non-brokered private placement of between $200,000 and $300,000, which is expected to close in escrow on June 30, 2008. The private placement funds will be released from escrow to the Company upon shareholder approval of:
1. a new slate of Directors;
2. a share consolidation of 4:1;
3. a new option plan; and
4. the private placement itself.
The private placement is subject to NEX approval, as are some of the matters to be brought before shareholders.
The Company will call an Annual General and Special Meeting in August, 2008 (the "Meeting") to provide shareholders an opportunity to consider and vote on these and other initiatives being recommended by the Board of Directors. However, prior to the Meeting, Mr. Rick Doman will be working with the Board to formalize a new business strategy which will be described in the Management Information Circular and which will be presented to shareholders at the Meeting.
Initiatives to be Considered at the Annual and Special Meeting
New Board. A revised slate of Directors, including current Directors, Mr. Jeremy Curnock Cook, Mr. Alan Savage and Mr. Michael Liggett as well as new Directors, Mr. Rick Doman and Mr. Rick Collins.
Share Consolidation. A share consolidation of 4:1 is proposed.
Option Plan. The Company will propose a new option plan to ensure sufficient options are in place to attract qualified personnel on an as needed basis.
Proposed Private Placement. The proposed private placement is a unit offering, with each unit consisting of one common share and one common share purchase warrant. The offering price is $0.02 per unit pre-consolidation and $0.08 per unit post consolidation. The warrants have an exercise price of $0.025 pre-consolidation and $0.10 post consolidation and expire on the first anniversary of the closing of the Private Placement out of escrow.
Reduction in Stated Share Capital. The Company will propose a reduction in its stated share capital to better reflect its situation.
Detailed information on these proposals will be described in the Management Information Circular to be sent to shareholders prior to the Meeting.
The Company will also propose a name change to reflect its new direction.
The Company will seek to resume trading of its common shares on the NEX exchange immediately after the Meeting. The Company is intending to commence a normal course issuer bid immediately upon commencement of trading, if the private placement funds are released from escrow.
The Company's current principal assets consist of cash and the potential $7 million milestone payments and modest royalties originating from the sale of its principal technology to Biolipox AB (now Orexo AB). The potential milestone payments consist of (i) $1.5 million upon a decision to enter a Phase 2b clinical study with a PDE inhibitor; (ii) $2.5 million upon a decision to initiate a Phase 3 study with a PDE inhibitor; and (iii) $3 million upon a decision to begin a Phase 3 clinical study with an LSAID(TM). Inflazyme may also receive up to 35% of the proceeds from the subsequent sale of the protein therapeutics technology if these assets are sold by November 2008. There can be no assurance that the milestones, royalties or payments related to the sale of the protein technology will become payable.
Inflazyme will continue to reduce its burn and conserve its current cash balance of approximately $2.9 million. The Company has subleased a significant portion of its facilities in Richmond, B.C. and is continuing efforts to sublease the remainder of its facility. As of mid-July the only full-time employee will be Mr. Doman on an initial salary of $5,000 per month. Board members will receive options and a meeting fee, rather than an annual retainer to reduce overall Board compensation.
Further information on the Company may be obtained from its website at www.inflazyme.com.
This news release contains certain "forward-looking statements" and "forward-looking information" which may include but is not limited to statements in respect of our future financial position or operations. Words like "believe", "intend", "may", "expect", "anticipate", "plan", "should" and other similar expressions are forward-looking statements that involve a number of risks and uncertainties. By their nature, forward-looking statements involve numerous factors, assumptions and estimates. Some but not all of the factors that could cause actual results to differ materially from those projected in our forward-looking statements include among others: risks associated with the completion of clinical trials and obtaining regulatory approval to market our products, market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain and develop partnership opportunities; and other risk factors identified from time to time in the Company's regulatory filings. For a further description of the principal risks affecting the Company, see our regulatory filings. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. 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.
The TSX Venture Exchange (NEX) does not accept responsibility for the adequacy or accuracy of this release.
Inflazyme Pharmaceuticals Ltd.
Sr. Director, Corporate Development
Toll Free: 1-800-315-3660 or (604) 279-8511
(604) 279-8711 (FAX)
Source: Inflazyme Pharmaceuticals Ltd.