MONTREAL, May 31 /CNW/ -- BioSyntech, Inc. (TSX BSY, BSYI)
<p><span class="xn-person">Dr. Amine Selmani</span>, former CEO of BioSyntech, and <span class="xn-person">Mr. Lorenzo</span> D'Alesio, both shareholders of BioSyntech, are today announcing that they have formed a shareholder group called BioSyntech Investors Special Action Group to fight to protect the rights of shareholders against the untimely and premature sale of BioSyntech's assets by PriceWaterhouseCoopers as interim receiver of BioSyntech.</p>
<p>Following the filing by BioSyntech Management on <span class="xn-chron">May 12, 2010</span> of a Notice of Intention to File a Proposal under the Bankruptcy and Insolvency Act, PriceWaterhouseCoopers was appointed as interim receiver with the mandate to sell off the assets. PriceWaterhouseCoopers will, on <span class="xn-chron">Tuesday June 1, 2010</span>, be seeking Court approval for the sale of BioSyntech's assets to Piramal HealthCare (<span class="xn-location">Canada</span>) Limited for an amount estimated to represent no more than 5% of the value of BioSyntech's assets. The hearing will be held at 9h15 at the <span class="xn-location">Montreal</span> Courthouse, located at 1 Notre-Dame Street East, in room 16.12.</p>
<p>If this offer is accepted, the proceeds will be paid entirely to secured creditors, leaving nothing to shareholders, having invested in excess of <span class="xn-money">$60 million</span>, nor to unsecured creditors.</p>
<p><span class="xn-person">Dr. Selmani</span> and Mr. D'Alesio consider that the approval of any sale of BioSyntech's assets is at this time very premature as BioSyntech has not yet received the final results of its clinical studies, which they fully expect to be very positive. These results will be received over the course of the summer.</p>
<p>The group has retained Mtre <span class="xn-person">Michel Coderre</span> and Mtre Stephane de Neubourg as legal counsel to fight this premature sale in the name of BioSyntech's shareholders and creditors. Mr. D'Alesio is proxy holder representing over 13% of the common shares of BioSyntech.</p>
<p><span class="xn-person">Dr. Selmani</span> and Mr. D'Alesio presently wish to inform all shareholders and to seek additional participation from them. Moreover, they are presently seeking monetary contributions from shareholders to assemble a legal fees war chest to allow all shareholders to properly seek justice in the circumstances.</p>
Information on this can be found at http://www.biosyntechinvestors.com.
We require your participation and support, and time is of the essence.
For further information: For further information: Lorenzo D'Alesio, +1-514-297-7867, for BioSyntech Investors Special Action Group Web Site: http://www.biosyntechinvestors.com