VANCOUVER, Dec. 21 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation announced that it received notice yesterday that Stark Trading and Shepherd Investments International Ltd. (collectively “Stark”) has filed a petition in the Supreme Court of British Columbia seeking to have INEX declared bankrupt and that a receiving order be made in respect of the property of INEX. Stark is the majority holder of certain promissory notes issued by Inex International Holdings, a subsidiary of INEX. Other holders of the notes have not filed a similar petition nor joined in Stark’s petition. The promissory notes are not due until April 2007 and can be repaid in cash or in shares, at INEX’s option, at maturity.
INEX believes that this latest petition brought forward by Stark is an attempt to block the successful completion of the Plan of Arrangement announced November 17, 2005. As previously disclosed, INEX has already asked the Supreme Court of British Columbia to rule on whether the proposed plan can be completed given the terms of the Notes. The Supreme Court will hear this plan on January 5 and 6, 2006. This hearing will also now address Stark’s bankruptcy petition.
Timothy M. Ruane, President and Chief Executive Officer of INEX, said INEX is continuing with its plan to spin out its Targeted Immunotherapy assets into a new public company. “This is yet another attempt by Stark to try and block the completion of our plan to spin out our Targeted Immunotherapy technology. We believe this transaction represents the greatest value for all stakeholders, including the Note holders, and we will continue to move forward to secure court and shareholder approvals for its completion.”
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 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.
Contact Information Investors Ian Mortimer Vice President, Finance and Chief Financial Officer Phone: 604-419-3200 Email: info@inexpharm.com Website: www.inexpharm.com Media Karen Cook Boas James Hoggan & Associates Inc. Phone: 604-739-7500 Email: kcook@hoggan.com
Inex Pharmaceuticals Corporation
CONTACT: Investors: Ian Mortimer, Vice President, Finance and ChiefFinancial Officer, Phone: (604) 419-3200, Email: info@inexpharm.com,Website: www.inexpharm.com; Media: Karen Cook Boas, James Hoggan &Associates Inc., Phone: (604) 739-7500, Email: kcook@hoggan.com