Baker Brothers Investments receives securities of ConjuChem Biotechnologies Inc. in connection with a Plan of Arrangement



    TORONTO, Aug. 26 /CNW/ - Baker Bros Investments, L.P., Baker Bros.
Investments II, L.P., 667, L.P., Baker Brothers Life Sciences, L.P., 14159,
L.P. and Baker/Tisch Investments, L.P. (Collectively, "Baker Brothers
Investments") today announced that, pursuant to a plan of arrangement (the
"Plan of Arrangement") under Section 192 of the Canada Business Corporations
Act involving, among others, ConjuChem Biotechnologies Inc. (the
"Corporation"), its securityholders and Colabor Income Fund, all of the
securities of the Corporation, including those held by Baker Brothers
Investments, were exchanged for securities of a newly formed corporation
carrying on business under the name "ConjuChem Biotechnologies Inc." ("Newco")
having substantially identical terms and conditions. As such, Baker Brothers
Investments received an aggregate of approximately 43,050,055 common shares of
Newco (the "Newco Common Shares") in exchange for approximately 43,050,055
common shares of the Corporation owned by Baker Brother Investments
immediately prior to the Plan of Arrangement, which represent approximately
17.18% of the outstanding Newco Common Shares as at August 26, 2009. In
addition, pursuant to the Plan of Arrangement, Newco issued to Baker Brothers
Investments (other than Baker Brothers Investments, L.P.) 8% Convertible
Unsecured Debentures due December 31, 2010 (the "Newco Debentures") on terms
and conditions substantially identical to the convertible unsecured debentures
which had been issued by the Corporation to Baker Brothers Investments (other
than Baker Brothers Investments, L.P.) (the "Note Offerors"). The Note
Offerors hold Cdn.$3,520,000 aggregate principal amount of the Newco
Debentures. The Newco Debentures are convertible into Newco Common Shares at a
conversion price of $0.16 per Newco Common Share. In addition, pursuant to the
Plan of Arrangement, Newco issued to the Note Offerors warrants (the "Newco
Warrants") that entitle the Note Offerors to acquire one Newco Common Share
for each Newco Warrant on terms and conditions substantially identical to the
warrants which had been issued by the Corporation to the Note Offerors. The
Note Offerors hold 20,000,000 Newco Warrants with an exercise price of
Cdn.$1.00 per Newco Common Share which will expire on November 28, 2009 and
5,500,000 Newco Warrants with an exercise price of Cdn.$0.25 per Newco Common
Share which will expire on December 31, 2011.
    As a result of the completion of the transactions pursuant to the Plan of
Arrangement, Baker Brothers Investments, together with any joint actors,
beneficially own and control an aggregate of 43,050,055 Newco Common Shares
(or approximately 17.18% of the issued and outstanding Newco Common Shares).
Assuming the conversion the Newco Debentures and the exercise of the Newco
Warrants held by Baker Brothers Investments, Baker Brothers Investments,
together with any joint actors, would beneficially own and control
approximately 30.44% of the issued and outstanding Newco Common Shares.
    Baker Brothers Investments hold the Newco securities for investment
purposes only. Depending on market conditions and other factors, Baker
Brothers Investments may from time to time acquire additional securities of
Newco or dispose of such securities in the open market, by private agreement
or otherwise.





For further information:

For further information: Leo Kirby, 667 Madison Avenue, 21st Floor, New
York, New York, 10065, (212) 339-5633

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BAKER BROTHERS INVESTMENTS

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