KELOWNA, BRITISH COLUMBIA--(CCNMatthews - May 25, 2006) - PHEROMONE SCIENCES CORP. (the "Company") (TSX VENTURE:PHS) is pleased to announce that it has received TSX Venture approval to proceed with the Company's previously announced joint venture and financing agreement with Sertonex Inc. (Sertonex) of London Ontario and Sertoli Technologies Inc. (STI) of Tucson Arizona. The purpose of the joint venture is to develop a commercially viable treatment for Type 1 human diabetes using transplanted devices containing pig cells. The Company intends to exercise its option under the terms of the agreement and to begin the research project.
Under the terms of the October 31, 2005 agreement, Pheromone has the exclusive right to acquire 100% of the project by providing funding of up to $3,500,000 in three stages. The first financing of $1,000,000 is due within 90 days of Exchange approval, the second financing of $1,000,000 within 6 months and the third financing of $1,500,000 must occur within 12 months of Exchange approval. As each stage of the project is financed, Pheromone will acquire one third of the project by issuing 2,315,000 shares to the two shareholders of Sertonex, Dr. David White and Mr. Justin Leushner. Mr. Leushner will join the board of directors of the Company and Dr. White will be engaged as the principal researcher on the project.