Ambrilia Biopharma Provides Update on Its Restructuring Efforts
MONTREAL, QUEBEC--(Marketwire - April 7, 2010) - Ambrilia Biopharma Inc. (TSX:AMB) is pleased to announce today that the boards of directors of Ambrilia and its subsidiary, Cellpep Pharma Inc. ("Cellpep"), have approved a proposed transaction whereby Ambrilia and Cellpep would receive additional non-dilutive financing through the disposition of a limited partnership interest. Before expenses to be incurred in connection with this potential transaction, a gain in the amount of approximately $4M could be realized by Ambrilia and Cellpep upon the closing of such transaction. There is no assurance that such transaction will be completed. Ambrilia will apply to the Superior Court of Québec (Commercial Division) for an order authorizing it to proceed with such transaction.
Ambrilia is continuing its restructuring and its efforts to monetize its assets. In the context of that process, Raymond Chabot Inc., the Court appointed Monitor under the Companies' Creditors Arrangement Act (Canada) ("CCAA"), has launched a process aimed at either monetizing Ambrilia's assets, including its HIV Portfolio for the treatment of HIV/AIDS and its HCV Program, or selling or merging the Company, or obtaining funding for the development of its Portfolio for the treatment of HIV/AIDS and its HCV Program. Any questions or offer with respect to this process should be made to Mr. Patrick-Claude Dionne who can be reached at Dionne.PatrickClaude@rcgt.com. There is no assurance that such process will lead to any transaction. Any such transaction would be subject to approval by its Board and appropriate regulatory authorities.
Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the outcome of Ambrilia proceedings under the ("CCAA").
About Ambrilia Biopharma Inc.
Ambrilia Biopharma Inc. (TSX:AMB) is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology. Ambrilia's product portfolio is comprised of oncology and antiviral assets, including two new formulations of existing peptides for cancer treatment, a targeted delivery technology for cancer, an HIV protease inhibitor program as well as HIV integrase and entry inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal. For more information, please visit the Company's web site: www.ambrilia.com.
The Company is currently subject to court protection under the CCAA.
Ambrilia's forward looking statements
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward-looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, the timing and continuance of the CCAA protection, the uncertainty involved in the court proceedings and the implementation of any plan of arrangement under the CCAA, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the Company's filings. We refer you to the Risk Factors section of the Company's annual information form which contains a more exhaustive analysis of the risks and uncertainties that are generally connected to the business of the Company. Such statements are also based on various assumptions, including the successful emergence from the insolvency proceedings, the successful and timely completion of clinical studies on Ambrilia's products demonstrating efficacy and safety for human use, their successful commercialization within the forecasted timelines and the attainment of the forecasted milestone payments and other revenues. Failure to complete a strategic or financial transaction as a result of the review of strategic alternatives could have a material adverse effect on Ambrilia. While Ambrilia anticipates that subsequent events and developments may cause Ambrilia's views to change, Ambrilia specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws.
For more information, please contact
Ambrilia Biopharma Inc.
Richard La Rue, L.L.L., D.D.N.
Interim President & CEO
514-751-2003 ext. 269
Posted: April 2010