BURNABY, BC, April 16, 2014 /CNW/ - Welichem Biotech Inc. (the “Company”) (TSX-V: WBI) has become aware, through the filing on SEDAR on April 15, 2014 of a take-over bid circular dated April 11, 2014, that LJ Resources Co., Ltd. (“LJ”), is making an unsolicited formal offer to purchase all of the outstanding Common shares of the Company at a price of $0.15 per Common share (the “Offer”). The Company notes the last reported closing price for the Common shares on the TSX Venture Exchange is $0.33.
Due to the fact that LJ has owned securities carrying more than 10% of the voting rights attached to all issued and outstanding securities of the Company within the past year, the Offer appears to constitute an “insider bid” under the policies of the TSX Venture Exchange. In addition, the Company is aware that Lei Lv, who is currently a director of the Company, and James Dai, who was a director of the Company until January 2, 2014, are employees of LJ.
The Board of Directors of the Company has formed a special committee of independent directors to consider the Offer. The Company urges its shareholders not to take any action in respect of the Offer until shareholders have received further communication from the Board of Directors of the Company.
About Welichem Biotech Inc.
Welichem Biotech Inc. is a publicly-traded biotechnology company developing therapeutic drugs in the fields of autoimmune diseases and cancer. For a more complete business and financial profile of the Company, interested parties are encouraged to visit the Company’s website, www.welichem.com.
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. In particular, this document contains forward-looking information and statements regarding the Offer and the Special Committee’s review of available information relating to same.
These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control, including further actions or announcements of the offeror or other third parties, changes in laws and regulations, stock market volatility and obtaining required approvals of regulatory authorities. Readers should not place undue reliance on forward-looking statements.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Welichem Biotech Inc.
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