Forbes Medi-Tech Completes US $6 Million Private Placement

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 27, 2005--Forbes Medi-Tech Inc. (NASDAQ:FMTI)(TSX:FMI) announced today it has completed a US$6 million Private Placement, resulting in the issuance of Series B Convertible Preferred Shares (preferred shares) with warrants. The preferred shares are convertible at any time, without further consideration, at the option of the holder at a rate of US$1.65 per common share into a total of 3,636,363 common shares, subject to adjustment. The preferred shares mature on October 27, 2008, at which time the Company has the option to redeem the shares at their issue price or convert the preferred shares to common shares at 90% of the date of maturity market price. The warrants entitle the holder to purchase up to 1,818,182 common shares of the Company at a price of US$2.06 per share for five years from the date of closing. Placement proceeds will be used to fund the Company's pharmaceutical research program and for operational purposes.