VANCOUVER, Jan. 27 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation ("INEX"; TSX: IEX) announced that at its Special Meeting of Shareholders held today, shareholders of INEX approved the Plan of Arrangement to complete the spin-out of INEX's Targeted Immunotherapy assets into a new company, Tekmira Pharmaceuticals Corporation ("Tekmira") with 98.3% of shares cast voting in favour of the spin-out. Shareholders also approved a stock option plan for Tekmira.
Timothy M. Ruane, President and Chief Executive Officer of INEX, said the shareholder vote is a strong endorsement of the spin-out of INEX's Targeted Immunotherapy assets into Tekmira. "We are confident that the formation of Tekmira creates the greatest value for all stakeholders and we are pleased that shareholders have overwhelmingly supported the transaction."
Closing of the transaction is now subject to the receipt of certain court approvals and approval of the Toronto Stock Exchange. On January 5 and 6, 2006, INEX completed a court hearing to determine whether the Plan of Arrangement can be completed given the terms of INEX's current outstanding convertible debt. The court hearing also discussed a bankruptcy petition brought forward by Stark Trading and Shepherd Investments International Ltd. (collectively "Stark") on December 20, 2005. The judge has reserved judgment until a later date. INEX will report on the final judgment when it is received. Stark is also appealing an October 27, 2005 decision of the Supreme Court of British Columbia dismissing a bankruptcy petition originally filed September 27, 2005. A court date of February 13, 2006 has been set to hear this appeal.
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.
The Plan of Arrangement and the spin-out of INEX's Targeted Immunotherapy technology into Tekmira will not close until after all of the court hearings have been completed.
Ruane added, "We are confident that we will be successful in both the appeal as well as the ability to complete this transaction given the terms of INEX's outstanding convertible debt. We aim to close the transaction as soon as possible following the court decisions."
The details of the spin-out transaction were disclosed in an INEX press release dated January 3, 2006 and the information circular can be accessed at www.sedar.com.
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
Source: Inex Pharmaceuticals Corporation
