TSX symbol: SBS
CALGARY, April 4, 2012 /CNW/ - SemBioSys Genetics Inc. ("SemBioSys" or the "Company") (TSX:SBS), a development stage biotechnology company that utilizes its proprietary safflower based technology platform to develop high value proteins and other products, today announced it has applied to voluntarily delist its common shares from the Toronto Stock Exchange (TSX). In addition, the Company is taking immediate steps to execute on one or more strategic initiatives due to its current financial situation.
The Company believes that it does not currently meet the continued listing requirements related to liquidity to maintain its TSX listing and therefore has taken the decision to voluntarily delist. The Company's securities will remain listed on the TSX until the end of trading on May 1, 2012 to provide liquidity to its shareholders prior to delisting. The Company is currently evaluating its ability to list on another Canadian stock exchange.
The current liquidity situation of the Company has resulted in an orderly termination of the majority of its employees and contractors. The CEO and several other staff remain working for the Company. The Company is pursuing a number of strategic options available to it in parallel with the potential of an orderly wind down of the Company's business. The Company is undertaking these tough and painful measures in an effort to preserve its business, however, no assurances can be made that it will be successful. There is no assurance that any of the strategic alternatives, if successful, will provide any return to the shareholders.
On October 10, 2011 the Company signed a strategic partnership with Tianjin Tasly Pharmaceuticals Co. Ltd. and Tasly Pharmaceuticals Inc. This partnership has not resulted in any financial benefit to SemBioSys to date and, as a result, the Company has not transferred any intellectual property to the newly formed joint venture as of this date.
"The Board of Directors and I are grateful to our talented and loyal staff, as well as SemBioSys' loyal and longstanding shareholders at this difficult time. We want to assure you that we have been working day and night to create the best possible outcome for the Company and all of its stakeholders," stated James Szarko, President and CEO.
SemBioSys employs its patented, renewable plant seed oilbody and protein expression technology platforms to develop and commercialize high value proteins and oils including health and wellness products and drug candidates. 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 the fact that, the Company is a development stage entity and currently relies on investments and funding from strategic partners and not profits to fund it operations and it is possible that our ability to continue as a going concern may change within a very short period of time and have adverse effects on the Company's ability to continue under its current business model. The Company's ability to continue to obtain sufficient and suitable financing from both our partnerships and outside our partnerships to support operations, pre-clinical and clinical trials and commercialization of products and no assurances can be made that the Company will be successful in raising such capital, realizing assets, discharging liabilities or achieving successful partnership collaborations to generate sufficient cash flows to continue as a going concern. The Company's ability to execute partnerships and corporate alliances or ensure that its existing strategic partnerships will continue to be successful. The risk that partners are unable to meet projected development, commercialization, distribution or sales targets. The risks relating to uncertainties of the regulatory approval process for our products and processes. The Company's ability to develop seed lines and manufacturing processes that result in competitive advantage and commercial viability. The impact of competitive products and pricing and the assumption that we will be able to successfully compete in the targeted markets. The assumption that we will be able to successfully complete in a timely manner in pre-clinical and clinical studies. The risk that we may be unable to attract and/or retain key personnel and key collaborators. The Company's ability to adequately protect proprietary information and technology from competitors. The Company's' ability to continue to successful development its existing and future product candidates or effectively enter the market and commercialize its products with partners or independently. On June 17, 2011, at our Annual and Special Meeting of Shareholders, shareholders unanimously approved a special resolution, approving an amendment to the Company's articles of incorporation to consolidate its issued and outstanding Common Shares. This provides the board of directors of the Company the authority, in its discretion, prior to June 17, 2012, to select the exact consolidation ration, provided that (i) the ration may be no smaller than one post-consolidation Share for every (8) pre-consolidation Common Shares and no larger than one post-consolidation Share for every thirty (30) pre-consolidation Common Shares, and (ii) the number of pre-consolidation Common Shares in the ratio must be a whole number of common shares. The risks associated with a potential Share Consolidation and further risks regarding the Company are set out in the annual information form and other ongoing filings with the Canadian securities regulatory authorities which 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.
For further information:
Senior Vice President
The Equicom Group Inc.
Phone: (416) 815-0700 ext. 238