VANCOUVER, Aug. 30, 2013 /CNW/ - Welichem Biotech Inc. ("Welichem" or the "Company", TSX.V: WBI) announces that it is making a substantial issuer bid
pursuant to which it will offer to purchase for cancellation up to
23,294,411 of its outstanding common shares ("Shares") at a purchase price of $0.85 per Share for an aggregate purchase
price of up to $20 million (the "Offer"). The Offer is being made to provide its shareholders with an
opportunity for liquidity, as trading on the TSX Venture Exchange has
been historically low. The Offer will remain open for acceptance until
5:00 p.m. (Toronto time) on October 9, 2013.
The Offer will not be conditional on any minimum number of Shares being
tendered to the Offer, but will be subject to other conditions
customary for transactions of this nature, including receipt of all
required regulatory approvals, including the TSX Venture Exchange.
Welichem plans to mail the formal offer to purchase, issuer bid circular
and letter of transmittal, which contain the terms and conditions of
the Offer, instructions for tendering Shares and the factors considered
by the Company and the Board in making its decision to authorize making
the Offer, among other things, on or about August 30, 2013. These
documents will be filed with the applicable Canadian securities
regulators and will be available on SEDAR at www.sedar.com and on Welichem's website at www.welichem.com. Shareholders should carefully read the offer to purchase, issuer bid
circular and letter of transmittal prior to making a decision to tender
to the Offer.
The Laurel Hill Advisory Group Company has been retained by the Company
to act as depositary in connection with the Offer. If shareholders have
other questions related to the Offer, they can contact Laurel Hill by
telephone at 1-877-452-7184 or by email at firstname.lastname@example.org.
The Board has authorized the making of the Offer. Neither the Company
nor its Board makes any recommendation to shareholders as to whether to
tender or refrain from tendering their Shares to the Offer.
Shareholders are urged to consult their own financial, tax and legal
advisors and to make their own decisions whether to tender or to
refrain from tendering their Shares to the Offer and, if so, how many
Shares to tender.
This press release is for information purposes only and is not an offer
to buy or the solicitation of an offer to sell any Shares. This
document does not constitute an offer or a solicitation to any person
in any jurisdiction in which such offer or solicitation is unlawful.
About Welichem Biotech Inc.
Welichem Biotech Inc. is a publicly-traded biotechnology company
developing therapeutic drugs in the fields of autoimmune diseases and
cancers. For a more complete business and financial profile of the
Company, interested parties are encouraged to visit the Company's
Forward looking statements:
Certain statements and other information included in this press release
constitute "forward-looking information" within the meaning of
applicable Canadian securities legislation. All statements in this
press release, other than those relating to historical information or
current conditions, are forward-looking statements, including
information with respect to the Offer. Forward-looking statements and
forward-looking information are based on information available at the
time they are made, underlying estimates and assumptions made by
management and management's good faith belief with respect to future
events, performance and results, and are subject to inherent risks and
uncertainties surrounding future expectations generally. Such risks and
uncertainties include, but are not limited to the satisfaction or
waiver of the conditions to the Offer, the extent to which Shareholders
determine to tender their Shares to the Offer, the Company's ability to
successfully implement its business strategy and activities, changes to
the regulatory and economic environment in which the Company operates
now and in the future, including changes in accounting policies or
pronouncements introduced by regulatory authorities, changes in the
Company's tax liabilities, either through changes in tax laws or future
assessments, and any material disruption to the Company's operations,
among other things. Actual results and developments are likely to
differ, and may differ materially, from those expressed or implied by
the forward-looking information contained in this press release. Such
statements are based on a number of assumptions which may prove to be
incorrect, including, but not limited to, assumptions about general
business and economic conditions; interest rates and foreign exchange
rates; tax benefits and tax rates. Welichem disclaims any intention or
obligation to update or revise any forward-looking statements in this
press release as a result of new information or future events, except
as may be required under applicable Canadian securities legislation.
Neither 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. Tel.: (604) 432-1703, Email: email@example.com