MONTREAL, QUEBEC--(Marketwire - January 27, 2011) - ATTENTION BUSINESS/FINANCIAL/HEALTH EDITORS
Ambrilia Biopharma Inc.(TSX: AMB) announced today that it obtained today a seventh order from the Superior Court of Quebec (Commercial Division) (the "Court") extending in its effect the initial order issued by the Court on July 31, 2009 covering Ambrilia and Cellpep Pharma Inc., its subsidiary, until April 29, 2011, the whole pursuant to the Companies' Creditors Arrangement Act (Canada) ("CCAA"). The purpose of this extension is to provide Ambrilia with an opportunity to continue its discussions and negotiations relating to monetizing its assets, including its Antiviral Portfolio, Octreotide and Goserelin, and/or selling or merging the Company, and/or obtaining funding for the development of its Antiviral Portfolio, and, if successful, to develop and file a plan of arrangement for consideration by its creditors and to complete its restructuring process. As mentioned an its earlier press release, although Ambrilia's current discussions with interested parties have progressed, there is no assurance that such process will lead to any transaction.
Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the outcome of Ambrilia's proceedings under the CCAA and there is no assurance that its creditors and other stakeholders, including shareholders, will recover their claim or investment.
Ambrilia has been operating under the protection of the CCAA since July 31, 2009. This protection is currently in force until April 29, 2011. Ambrilia has been providing bi-weekly Default Status Reports under National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults since the month of August 2009.
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 is located in Montreal. For more information, please visit the Company's web site: www.ambrilia.com.
The Company is currently subject to court protection under the CCAA.
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, the timing and continuance of the CCAA protection, the uncertainty involved in the court proceedings and the implementation of any plan of arrangement under the CCAA, 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 emergence from the insolvency proceedings, 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.