VANCOUVER, Feb. 28 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation announced today that it intends to pursue an appeal from the recent Supreme Court of British Columbia ruling providing the holders of INEX’s outstanding convertible promissory notes the right to vote on INEX’s Plan of Arrangement to spin-out its Targeted Immunotherapy assets into a new company, Tekmira Pharmaceuticals Corporation (“Tekmira”). The ruling was received February 13, 2006 and the original hearing took place January 5 and 6, 2006.
INEX is basing its appeal on the fact that the current terms of the convertible debt do not provide the note holders a right to vote in this type of a transaction and providing the note holders a right to vote would be equivalent to re-writing the debt agreement.
INEX has also received notice that Stark Trading and Shepherd Investments International Ltd. (collectively “Stark”) will be pursuing appeals from the same Supreme Court of British Columbia ruling. It is INEX’s understanding that Stark will be appealing both the dismissal of the bankruptcy petition and the ruling that the spin-out of Tekmira can take place given the terms of the convertible debt.
INEX believes that the decisions of the Supreme Court dismissing the bankruptcy petition and ruling that the spin-out can take place given the terms of the convertible debt were correct rulings and INEX will continue to defend its position with respect to these decisions.
Timothy M. Ruane, President and Chief Executive Officer of INEX, said that INEX is working to expedite the appeals to complete the spin-out of Tekmira in the second quarter of 2006. “We continue to believe that the spin-out of Tekmira creates the greatest value for all stakeholders and we are working to complete the transaction as quickly as possible.”
INEX has filed its application for leave to appeal the ruling and is targeting to have this application heard by next week. If leave is granted, the appeal will be heard as soon as can be scheduled.
Stark is the majority holder of certain promissory notes issued by Inex International Holdings, a subsidiary of INEX. The promissory notes are not due until April 2007 and can be repaid in cash or in shares, at INEX’s option, at maturity.
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
