TSX symbol: SBS
CALGARY, Dec. 18 /CNW/ - SemBioSys Genetics Inc. ("SemBioSys" or the "Company") (TSX:SBS) today announced that it has completed the previously announced Plan of Arrangement (the "Arrangement") pursuant to section 193 of the Business Corporations Act (Alberta) ("ABCA") with Cathedral Energy Services Income Trust ("Cathedral"), providing for, among other matters, approximately $3.7 million in non-dilutive capital to the Company, comprised of both cash and securities. Of the $3.7 million, $100,000 was held back against delivery of certain documents in connection with the closing. The Court of Queen's Bench of Alberta has approved the previously announced Arrangement involving SemBioSys and Cathedral, among others, all as fully described in SemBioSys' management information circular dated November 16, 2009.
"This transaction strengthens SemBioSys' balance sheet without further dilution to shareholders and increases our runway into the second quarter of next year," said James Szarko, President and Chief Executive Officer of SemBioSys. "The infusion of capital enables SemBioSys to continue to make further developments in its Biosimilar Insulin and Apo AI(Milano) programs in order to maximize their value and strengthen our position in partnering discussions."
SemBioSys expects to net approximately $2.9 million after accounting for expected transaction-related costs.
As part of the transaction, SemBioSys will carry on its business operations as they existed immediately prior to the Arrangement in a new entity, named "SemBioSys Genetics Inc.", owned by the former shareholders of SemBioSys, but with the additional cash and securities received from Cathedral. The common shares of the new entity are expected to be listed on the Toronto Stock Exchange under the same stock symbol "SBS" as of December 23, 2009.
Calgary, Alberta-based SemBioSys is focused on leveraging its unique proprietary platform to manufacture high-value proteins and oils. SemBioSys' seed-based protein production system can provide for its partners product enablement, exceptionally low cost and unprecedented scalability. SemBioSys is applying the platform with high selectivity to products with tremendous clinical promise and value potential. The Company's current pharmaceutical development programs include insulin (SBS-1000, regulated as a biosimilar in Europe) and Apo AI(Milano), a next-generation cardiovascular therapy. SemBioSys is listed on the Toronto Stock Exchange under the ticker SBS. More information is available at www.sembiosys.com.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changing market conditions and market size, the successful initiation and timely and successful completion of clinical studies, the listing for trading of the SemBioSys shares on the TSX, the amount of capital expected to be recovered by SemBioSys in connection with the Plan of Arrangement, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time-to-time in the Company's ongoing filings with the Canadian securities regulatory authorities which filings can be found at www.sedar.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.
SOURCE SemBioSys Genetics Inc.
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