VANCOUVER, Oct. 18 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation announced today an updated timeline for the closing of the spin-out of Tekmira Pharmaceuticals Corporation (“Tekmira”). 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. The closing of the Tekmira spin-out is now subject to certain court hearings.
A hearing in British Columbia Supreme Court originally scheduled for October 23, 2006 has been rescheduled for November 7 and 8, 2006. The hearing was rescheduled to accommodate a 2-day hearing given that multiple motions will be heard, including INEX requesting a court order to transfer the ongoing legal dispute with Protiva Biotherapeutics, Inc. (“Protiva”) from INEX to Tekmira and a court approval of the Plan of Arrangement to transfer all of the Company’s assets to Tekmira. The court will also hear Protiva’s motion to block the spin-out of 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 the contractual agreements that created Protiva in 2001, INEX retained all rights to the delivery of small molecules and oligonucleotides, which INEX believes includes siRNA.
INEX believes that any technology advancements made by Protiva and its collaborators or by INEX for the delivery of oligonucleotides, including siRNA, are either owned by INEX or should be licensed to INEX on an exclusive, worldwide, paid-up and royalty-free basis. INEX is continuing to develop its siRNA delivery technology with its collaborator, Alnylam Pharmaceuticals, Inc., a leader in the development of therapeutics based on siRNA.
There is also an outstanding legal dispute between INEX and Protiva in the Superior Court of California. INEX has filed a motion 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 was scheduled to take place October 20, 2006 but will now be heard on December 15, 2006.
Timothy M. Ruane, President and Chief Executive Officer of INEX, said “We remain confident in our legal and contractual positions versus Protiva and we are working to close the Tekmira spin-out 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.
About INEX
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.
Forward Looking Statements
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: Contacts for Inex Pharmaceuticals Corporation: 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: kcook@hoggan.com
Inex Pharmaceuticals Corporation
CONTACT: Contacts for Inex Pharmaceuticals Corporation: Investors, IanMortimer, Vice President, Finance and Chief Financial Officer, Phone: (604)419-3200; Media, Karen Cook Boas, James Hoggan & Associates Inc., Phone:(604) 739-7500, Email: kcook@hoggan.com
