INEX Pharmaceuticals Updates Timeline For Completing Spin-Out Of Tekmira Pharmaceuticals Corporation
VANCOUVER, Sept. 28 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation announced today that it is working to close the spin-out of Tekmira Pharmaceuticals Corporation ("Tekmira") by the end of October 2006. On September 20, 2006 shareholders of INEX voted 99.3% in favour of spinning out all of the Company's technology, products, cash and partnerships into Tekmira.
Closing of the Tekmira spin-out is now subject to certain court approvals, including transferring an ongoing legal dispute between INEX and Protiva Biotherapeutics, Inc. from INEX to Tekmira. The dispute with Protiva relates to rights of certain drug delivery technology for the delivery of small interfering RNA ("siRNA"), a new class of oligonucleotide drugs. As part of contractual agreements that created Protiva in 2001, INEX retained all rights to the delivery of small molecules and oligonucleotides, including siRNA.
INEX has filed a motion in the Superior Court of California to dismiss a law suit initiated by Protiva on the grounds that California is an inappropriate venue to settle a dispute between two British Columbia based companies and that the law suit filed in California is nearly identical to claims filed in British Columbia Supreme Court. The California hearing is scheduled to take place October 20, 2006. A copy of the California motion can be accessed from the INEX website at www.inexpharm.com.
INEX also has a scheduled hearing in British Columbia Supreme Court on October 23, 2006. At this hearing INEX will request a court order to transfer the ongoing legal dispute with Protiva from INEX to Tekmira and approve the Plan of Arrangement to transfer all of the Company's assets to Tekmira.
Timothy M. Ruane, President and Chief Executive Officer of INEX, said INEX remains confident in its legal and contractual positions versus Protiva and will work through the necessary court procedures to close Tekmira. "We believe that the spin-out of Tekmira is in the best interests of all of our stakeholders and we are working to close the transaction as quickly as possible."
The completion of the spin-out of Tekmira will allow INEX, having no pharmaceutical assets, to complete a financing with an investor group led by Sheldon Reid, a co-founder of Energy Capitol Resources Ltd. ("Investor Group"). The Investor Group will invest up to $5.6 million in INEX by way of convertible debentures. Upon conversion of the debenture following the completion of the reorganization, the Investor Group will hold 100% of non-voting shares in INEX and 80% of the total number of shares outstanding. Therefore, current INEX common shareholders will own 20% of the equity of INEX and 100% of the Tekmira shares. The Investor Group plans to raise additional capital and acquire a new business for INEX. The money received by INEX as part of the corporate reorganization will be paid to the previous holders of INEX's convertible debt as per the note purchase and settlement agreement announced June 20, 2006.
INEX is a Canadian biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. Further information about INEX and this news release can be found at www.inexpharm.com.
There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes," "may," "plans," "will," "estimate," "continue," "anticipates," "intends," "expects," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, Inex's stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market Inex's products, the ability to protect its intellectual property and dependence on collaborative partners. 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 contained herein to reflect future results, events or developments.
INEX's common shares are traded on the Toronto Stock Exchange under the trading symbol "IEX".
CONTACT: Investors: Ian Mortimer, Vice President, Finance and Chief Financial Officer, Phone: (604) 419-3200; Media: Karen Cook Boas, James Hoggan & Associates Inc., Phone: (604) 739-7500, Email: email@example.comInex Pharmaceuticals Corporation
CONTACT: Investors: Ian Mortimer, Vice President, Finance and ChiefFinancial Officer, Phone: (604) 419-3200; Media: Karen Cook Boas, JamesHoggan & Associates Inc., Phone: (604) 739-7500, Email: firstname.lastname@example.org