Chromos enters into an Arrangement Agreement

    NORTH VANCOUVER, Aug. 7 /CNW/ - Chromos Molecular Systems Inc. ("Chromos"
or the "Company") announced today that it has entered into an arrangement
agreement (the "Arrangement Agreement") dated August 6, 2008 with, among
others, Calyx Bio-Ventures Inc. ("Calyx"), a wholly-owned subsidiary of
Chromos, and Modatech Systems Inc. ("Modatech"), pursuant to which the parties
to the agreement have agreed to effect a plan of arrangement (the
"Arrangement") under section 288 of the Business Corporations Act (British
Columbia). Modatech, a British Columbia company, has an equity investment in
Markham Ventures Partnership, which owns a commercial income producing
property, Market Village Mall, located in Markham, Ontario.
    Upon completion of the Arrangement, Calyx will be the holder of all of
the assets, property and undertaking of Chromos, together with additional cash
of $2.35 million (before taking into account certain expenses relating to the
transaction), and will be responsible for all of Chromos' obligations up to
the effective time of the Arrangement. In particular, Calyx will own all of
Chromos' intellectual property and all of the outstanding shares of Chromos'
subsidiaries, as well as 29% of the outstanding shares of Agrisoma Biosciences
Inc. Furthermore, among other things, the shareholders of Chromos will hold
all of the issued and outstanding shares of Calyx and all of the Class A
voting preferred shares of an entity to be formed by the amalgamation of
Modatech and 0828688 B.C. Ltd., a corporation which is currently a
wholly-owned subsidiary of Chromos. Such shares will be entitled to an annual
cumulative dividend of 6% per year of the retraction price and are retractable
by the holder at any time after August 31, 2013 at a price of $0.056401 per
share, for an aggregate retraction price of $500,000 to the shareholders of
Chromos, plus dividends accrued up to such date.
    Chromos also announced today that it has entered into amended support
agreements with shareholders holding approximately 34.1% of the outstanding
voting shares of Chromos, pursuant to which such shareholders have committed
to support the Arrangement.
    The Arrangement is subject to court, shareholder and customary regulatory
approvals. It is expected that Chromos will hold a meeting of shareholders to
consider the Arrangement on or about September 9, 2008, and if approved, that
the Arrangement will be completed before the end of September 2008. It is
expected that a management information circular relating to the Meeting,
containing the terms of the Arrangement, will be mailed to Chromos'
shareholders in the next few weeks.
    Chromos also announced today that the TSX Venture Exchange has
conditionally approved the listing of the common shares of Calyx, subject to
the satisfaction of customary conditions. There can be no assurance that such
shares will be listed on a stock exchange.

    Forward-Looking Statements

    Certain statements in this news release may contain "forward-looking
statements" or "forward-looking information" within the meaning of applicable
securities legislation Often, but not always, forward-looking statements or
information can be identified by the use of words such as "plans", "expects"
or "does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or "believes"
or variations of such words and phrases or words and phrases that state or
indicate that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Such forward-looking
statements or information include, without limitation, statements or
information about the timing and success of application to obtain approvals
required with respect to the Arrangement, and the listing of the shares of
Calyx Bio-Ventures Inc. With respect to forward-looking statements and
information contained herein, we have made numerous assumptions. Although our
management believes that the assumptions made and the expectations represented
by such statements or information are reasonable, there can be no assurance
that a forward-looking statement or information herein will prove to be
accurate. Forward-looking statements and information by their nature are based
on assumptions and involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or achievements, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include amongst others the risks and uncertainties
involved in satisfying the conditions to close the Arrangement. Should one or
more of these risks and uncertainties materialize, or should the underlying
assumptions prove incorrect, actual results may vary materially from those
described in forward-looking statements and information.
    Although we have attempted to identify factors that may cause actual
actions, events or results to differ materially from those described in
forward-looking statements and information, there may be other factors that
cause actual results, performances, achievements or events to not be as
anticipated, estimated or intended. Also, many of the factors are beyond our
control. As actual results and future events could differ materially from
those anticipated in such statements and information, readers should not place
undue reliance on forward-looking statements or information. Except as may be
required by law, we undertake no obligation to publicly update or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise. All forward-looking statements and
information made herein are qualified by this cautionary statement.

For further information:

For further information: Roger Flowerdew, CA, CEO and President, (604)
985-7100, Email:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890