MONTREAL, QUEBEC--(Marketwire - July 31, 2009) - Ambrilia Biopharma Inc. (TSX: AMB) announced today that it will seek court protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA") in Canada. Application under the CCAA will be heard by the Quebec Superior Court on July 31, 2009.
As a result of current economic circumstances, Ambrilia's Board of Directors authorized Ambrilia to take this action as the best alternative for the interests of the company, its employees, partners, creditors and other stakeholders. Ambrilia will seek protection under the CCAA as its current cash on hand would not allow it to meet its current obligations in the normal course of business. Ambrilia took this decision after thorough consultation with its advisors and extensive consideration of all other alternatives.
Ambrilia intends to avail itself of the provisions of the CCAA to prepare and present a plan of arrangement to its creditors. No restructuring plan has yet been determined by Ambrilia. The management intends to provide regular updates with respect to its restructuring plan.
About Ambrilia Biopharma Inc.
Ambrilia Biopharma Inc. (TSX: AMB) is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology. Ambrilia's product portfolio is comprised of oncology and antiviral assets, including two new formulations of existing peptides for cancer treatment, a targeted delivery technology for cancer, an HIV protease inhibitor program as well as HIV integrase and entry inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal. For more information, please visit the Company's web site: www.ambrilia.com.
Ambrilia's forward looking statements
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward-looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the Company's filings. We refer you to the Risk Factors section of the Company's annual information form which contains a more exhaustive analysis of the risks and uncertainties that are generally connected to the business of the Company. Such statements are also based on various assumptions, including the successful and timely completion of clinical studies on Ambrilia's products demonstrating efficacy and safety for human use, their successful commercialization within the forecasted timelines and the attainment of the forecasted milestone payments and other revenues. Failure to complete a strategic or financial transaction as a result of the review of strategic alternatives could have a material adverse effect on Ambrilia. While Ambrilia anticipates that subsequent events and developments may cause Ambrilia's views to change, Ambrilia specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws.