BURNABY, BC, July 8 /CNW/ - Welichem Biotech Inc. ("Welichem" or the
"Company") (TSX-V: WBI) announces that the Company will take steps to effect a
consolidation (the "Consolidation") of all of its issued and outstanding
common shares on the basis of one (1) post-consolidation common share for
every ten (10) pre-consolidation common shares. The Company previously
received shareholders' approval for the Consolidation at the special general
meeting held on April 6, 2009. The effective date of the Consolidation will be
announced after the Company receives approval from the TSX Venture Exchange.
The name of the Company will not be changed in conjunction with the
Consolidation.
The Company also announces that it has arranged a non-brokered private
placement, to be completed after the effectiveness of the Consolidation, for
CDN $3,750,000 through the issuance of 25,000,000 units of its
post-Consolidation securities at the price of $0.15 per unit. Each unit will
consist of one post-Consolidation common share and one-half of one share
purchase warrant. Each whole share purchase warrant is exercisable into one
post-Consolidation common share at an exercise price of $0.15 for a period of
24 months from the date of issuance of the share purchase warrant. The Company
may pay a finder's fees equal to 10% of the gross proceeds in connection with
the private placement.ON BEHALF OF THE BOARD
"Tan Xiangdong"
Tan Xiangdong, Chairman of the BoardThe TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this news
release. This press release contains forward-looking statements that include
our belief as to the effects of the proposed share consolidation and the
Company's ability to complete the private placement for $3.75 Million
post-Consolidation. Certain risks and uncertainties such as our ability to
successfully complete the share consolidation could cause the Company's actual
results to differ materially from those in the forward-looking statements.
%SEDAR: 00021386E
For further information: Genhui Chen, Chief Executive Officer, Tel.:
(604) 432-1703, Email: gchen@welichem.com
