Amorfix completes $10.0 million private placement


    TSX Venture: AMF

    TORONTO, March 8 /CNW/ - Amorfix Life Sciences Ltd. (TSX-V:AMF), a
theranostics company developing treatments and diagnostics for aggregated
misfolded protein related diseases, today announced it has completed its
previously announced private placement, including the entire option granted to
the underwriters, by issuing 7,694,000 units at a price of $1.30 per unit for
total gross proceeds to the Company of approximately $10,000,000.
    Each unit (the "Unit") consists of one common share and one-half of one
common share purchase warrant. Each whole common share purchase warrant
entitles the holder to purchase one common share of Amorfix at a price of
$1.95 for a period of 24 months following the closing date of the offering.
The securities issued pursuant to this offering are subject to a four-month
hold period that expires on July 8, 2007.
    The offering was completed through a syndicate of underwriters led by
Versant Partners Inc. and including Fraser Mackenzie Limited and Pacific
International Securities Inc. The underwriters received a 7% cash commission
(excluding purchasers designated by the President) and compensation warrants
equal to 8% of the Units sold, each compensation warrant having the same terms
as the Unit warrants.
    As previously-announced, Amorfix granted the underwriters an option,
exercisable at any time until 48 hours prior to the closing of the financing
to purchase up to an additional 1,540,000 Units on the same terms and
conditions. This option was exercised and increased the total gross proceeds
to Amorfix from $8,000,000 to approximately $10,000,000.
    The private placement is subject to customary conditions, including final
acceptance by the TSX Venture Exchange. Amorfix plans to use the net proceeds
to advance its Alzheimer's diagnostic program, expand its therapeutic pipeline
and for working capital and general corporate purposes.
    The securities offered have not been, and will not be, registered under
the United States Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or any applicable exemption
from the registration requirement of such Act. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
    The Company also announced that 40,000 stock options were awarded to a
director on August 10, 2006 with an exercise price of $1.14 and a term of five

    About Amorfix

    Amorfix is an emerging biotechnology company focused on the diagnosis and
treatment of brain-wasting diseases, where aggregated misfolded proteins
(AMPs) are prevalent. These include "prions", the infectious agents of the
Transmissible Spongiform Encephalopathies (TSE), such as BSE and variant CJD,
as well as degenerative diseases such as Alzheimer's Disease, ALS and
Parkinson's Disease. Amorfix is focused on discovering and commercializing
technologies to become the world leader on AMP diseases. The company will use
this knowledge to develop diagnostic kits, treatments and vaccines for AMP

    The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This information
release may contain certain forward-looking information. Such information
involves known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements to be materially different
from those implied by statements herein, and therefore these statements should
not be read as guarantees of future performance or results. All
forward-looking statements are based on the Company's current beliefs as well
as assumptions made by and information currently available to it as well as
other factors. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. Due to risks and uncertainties, including the risks and uncertainties
identified by the Company in its public securities filings, actual events may
differ materially from current expectations. The Company disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

For further information:

For further information: Dr. George Adams, President & Chief Operating
Officer, Amorfix Life Sciences Ltd., Tel: (416) 482-3813, Fax: (416) 482-3811,; James Parsons, Chief Financial Officer, Amorfix Life
Sciences Ltd., Tel: (416) 482-3814, Fax: (416) 482-3811,

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Amorfix Life Sciences Ltd.

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