, April 16, 2014
/CNW/ - Welichem Biotech Inc. (the
"Company") (TSX-V: WBI) has become aware, through the filing on SEDAR
on April 15, 2014
of a take-over bid circular dated April 11, 2014
that LJ Resources Co., Ltd. ("LJ"), is making an unsolicited formal
offer to purchase all of the outstanding Common shares of the Company
at a price of $0.15
per Common share (the "Offer"). The Company notes
the last reported closing price for the Common shares on the TSX
Venture Exchange is $0.33
Due to the fact that LJ has owned securities carrying more than 10% of
the voting rights attached to all issued and outstanding securities of
the Company within the past year, the Offer appears to constitute an
"insider bid" under the policies of the TSX Venture Exchange. In
addition, the Company is aware that Lei Lv, who is currently a director
of the Company, and James Dai, who was a director of the Company until
January 2, 2014, are employees of LJ.
The Board of Directors of the Company has formed a special committee of
independent directors to consider the Offer. The Company urges its
shareholders not to take any action in respect of the Offer until
shareholders have received further communication from the Board of
Directors of the Company.
About Welichem Biotech Inc.
Welichem Biotech Inc. is a publicly-traded biotechnology company
developing therapeutic drugs in the fields of autoimmune diseases and
cancer. For a more complete business and financial profile of the
Company, interested parties are encouraged to visit the Company's
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
All statements included in this press release that address activities,
events or developments that the Company expects, believes or
anticipates will or may occur in the future are forward-looking
statements. In particular, this document contains forward-looking
information and statements regarding the Offer and the Special
Committee's review of available information relating to same.
These forward-looking statements involve numerous assumptions made by
the Company based on its experience, perception of historical trends,
current conditions, expected future developments and other factors it
believes are appropriate in the circumstances. In addition, these
statements involve substantial known and unknown risks and
uncertainties that contribute to the possibility that the predictions,
forecasts, projections and other forward-looking statements will prove
inaccurate, certain of which are beyond the Company's control,
including further actions or announcements of the offeror or other
third parties, changes in laws and regulations, stock market volatility
and obtaining required approvals of regulatory authorities. Readers
should not place undue reliance on forward-looking statements.
There can be no assurance that forward-looking statements or information
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, you should not place undue reliance on the forward-looking
statements or information contained herein. Except as required by law,
we do not expect to update forward-looking statements and information.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Welichem Biotech Inc.