For immediate release: September 28, 2005
VANCOUVER - Inex Pharmaceuticals Corporation ("INEX"; TSX: IEX) announced that it received notice yesterday that Stark Trading and Shepherd Investments International Ltd. (collectively “Stark”) has filed a petition in the Supreme Court of British Columbia seeking to have INEX declared bankrupt and that a receiving order be made in respect of the property of INEX. Stark has asked for the petition to be heard on October 11, 2005. Stark is the majority holder of certain promissory notes issued by Inex International Holdings, a subsidiary of INEX. Other holders of the notes have not filed a similar petition nor joined in Stark’s petition. The promissory notes are not due until April 2007 and can be repaid in cash or in shares, at INEX’s option, at maturity.
Timothy M. Ruane, President and Chief Operating Officer of INEX, said INEX is continuing to operate its business of advancing its products through development to maximize the value of its assets. “We categorically deny the allegations brought forward by Stark and will defend against these allegations vigorously. We are focused on executing our objectives of partnering Marqibo™ and the other products in our pipeline to maximize the value of our assets for all stakeholders.”
At June 30, 2005, INEX had $15.2 million in working capital and is committed to ensuring that this capital will be sufficient to ensure INEX and Inex International can pay all of their debts in the normal course of business past the maturity date of the notes.
“Given our current working capital position and the steps we have taken over the past 10 months to reduce our burn rate, we can meet all of our obligations as they become due. The promissory notes are not due until April 2007 and can be repaid in cash or in shares, at INEX’s option, at that time,” said Ruane.
About INEX
INEX is a Canadian biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. Further information about INEX can be found at www.inexpharm.com.
Forward Looking Statements
There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words “believes,” “may,” “plans,” “will,” “estimate,” “continue,” “anticipates,” “intends,” “expects,” and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, INEX’s stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market INEX’s products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.
Contact Information
Investors
Ian Mortimer
Vice President, Finance and Chief Financial Officer
Phone: 604-419-3200
Email: info@inexpharm.com
Website: www.inexpharm.com
Media
Karen Cook Boas
James Hoggan & Associates Inc.
Phone: 604-739-7500
Email: kcook@hoggan.com
