Welichem's Directors Affirm Recommendation that Shareholders Reject LJ Resources Co., Ltd. Offer
BURNABY, BC, June 2, 2014 /CNW/ - Welichem Biotech Inc. (the "Company") (TSXV: WBI) announces today that it has filed with applicable securities regulatory authorities a notice of change (the "Notice of Change") to the directors' circular dated April 29, 2014 issued by the board of directors of Welichem in response to the unsolicited offer (the "Offer") from LJ Resources Co., Ltd. ("LJ") to acquire all of Welichem's common shares (the "Shares") at a price of $0.15 per Share dated April 11, 2014 (the "Original Circular"), as amended by the notice of change dated May 28, 2014 (the "Amended Circular").
The board of directors of Welichem, on the recommendation of its special committee, unanimously affirms its recommendation that Welichem shareholders REJECT the Offer and NOT TENDER their Shares to the Offer.
The Original Circular contained many deficiencies, and therefore Welichem applied to the British Columbia Securities Commission for a cease trade order with respect to the Offer. As a result of negotiations conducted with LJ after the filing of the application, the Amended Circular has corrected some of these deficiencies, and therefore Welichem has withdrawn its application. However, Welichem remains concerned that the disclosure in the Amended Circular remains inadequate and confusing, and that the Offer remains financially inadequate and not in the best interests of Welichem shareholders. Welichem notes that the Offer is still at a significant discount to both the current trading price of the Shares on the TSX Venture Exchange and the fair market value of the Shares as determined by an independent valuator in the valuation included in the Original Circular.
The Notice of Change is being mailed to Welichem shareholders and is currently available on SEDAR under Welichem's profile at www.SEDAR.com. Welichem shareholders are urged to read the Notice of Change in its entirety.
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 any possible amendments to the Offer or to the take-over bid circular, 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.For further information:
Liren Tang, President and Chief Executive Officer of the Company: Tel.: (604) 432-1703, Email: firstname.lastname@example.org.