Lorus Therapeutics completes reorganization resulting in non dilutive financing
10 Julio 2007 - 7:04PM
PR Newswire (US)
TORONTO, July 10 /PRNewswire-FirstCall/ -- Lorus Therapeutics Inc.
(TSX: LOR; AMEX: LRP), a biopharmaceutical company specializing in
the research and development of pharmaceutical products and
technologies for the management of cancer, today announced that the
corporate reorganization involving, among others, 4325231 Canada
Inc. (formerly Lorus Therapeutics Inc., "Old Lorus"), Lorus
Therapeutics Inc. (formerly 6650309 Canada Inc., a wholly owned
subsidiary of Old Lorus, "New Lorus"), 6707157 Canada Inc. and
Pinnacle International Lands Inc. has been completed. The
completion of the transaction resulted in approximately $8.5
million in additional cash for New Lorus, subject to a $600,000
holdback, a post closing adjustment and not including the costs of
the transaction, without diluting the equity interests of existing
securityholders. The transaction was described in detail in the
management proxy circular of Old Lorus dated May 25, 2007 and
securityholder approval for the transaction was obtained on June
25, 2007. As a result of this corporate reorganization, each common
share of Old Lorus has been exchanged as of today for one common
share of New Lorus. In addition, as previously disclosed,
shareholders who are not resident in the United States (other than
certain selling shareholders) will receive voting common shares of
Old Lorus and shareholders who are resident in the United States
will receive a nominal cash payment instead of such voting common
shares. New Lorus will continue the business previously carried on
by Old Lorus as of today. Effective at the opening of the markets
on July 11, 2007, the common shares of New Lorus will begin trading
on the Toronto Stock Exchange and AMEX and the common shares of Old
Lorus will cease to trade. There is no change to the trading
symbols (TSX: LOR; AMEX: LRP). "We are very pleased to complete the
reorganization," commented Dr. Aiping Young, President and CEO of
New Lorus. "We believe that the additional funds put us in a strong
position where we can accelerate the clinical development of our
lead compounds and extend our pipeline of products. We believe that
the reorganization was especially important in that it resulted in
a capital injection for the company that did not dilute shareholder
interests." About Lorus Lorus is a biopharmaceutical company
focused on the research and development of novel therapeutics in
cancer. Lorus' goal is to capitalize on its research, preclinical,
clinical and regulatory expertise by developing new drug candidates
that can be used, either alone, or in combination with other drugs,
to successfully manage cancer. Through its own discovery efforts
and an acquisition and in-licensing program, Lorus is building a
portfolio of promising anticancer drugs. Lorus has completed one
Phase II and one Phase III clinical trial. Lorus Therapeutics Inc.
is listed on the Toronto Stock Exchange under the symbol LOR, and
on the American Stock Exchange under the symbol LRP.
Forward-looking statements This press release contains
forward-looking statements within the meaning of Canadian and U.S.
securities laws. Such statements include, but are not limited to,
statements relating to: financings and corporate reorganizations,
the establishment of corporate alliances, the Company's plans,
objectives, expectations and intentions and other statements
including words such as "continue", "expect", "intend", "will",
"should", "would", "may", and other similar expressions. Such
statements reflect our current views with respect to future events
and are subject to risks and uncertainties and are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by us are inherently subject to significant
business, economic, competitive, political and social uncertainties
and contingencies. Many factors could cause our actual results,
performance, achievements or the transactions described in this
press release to be materially different from any future results,
performance, achievements or transactions described in this press
release, if at all, that may be expressed or implied by such
forward-looking statements, including, among others: the progress
of negotiations; our ability to obtain regulatory, securityholder
and other approvals; our ability to obtain the capital required for
research and operations; the inherent risks in early stage drug
development including demonstrating efficacy; development time/cost
and the regulatory approval process; the progress of our clinical
trials; our ability to find and enter into agreements with
potential partners; our ability to attract and retain key
personnel; changing market conditions; and other risks detailed
from time-to-time in our ongoing quarterly filings, annual
information forms, annual reports and annual filings with Canadian
securities regulators and the United States Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should the assumptions set out in the section
entitled "Risk Factors" in our filings with Canadian securities
regulators and the United States Securities and Exchange Commission
underlying those forward-looking statements prove incorrect, actual
results may vary materially from those described herein. These
forward-looking statements are made as of the date of this press
release and we do not intend, and do not assume any obligation, to
update these forward-looking statements, except as required by law.
We cannot assure you that such statements will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Investors are cautioned that
forward-looking statements are not guarantees of future performance
and accordingly investors are cautioned not to put undue reliance
on forward-looking statements due to the inherent uncertainty
therein. Lorus Therapeutics Inc.'s recent press releases are
available through its website at http://www.lorusthera.com/.
DATASOURCE: Lorus Therapeutics Inc. CONTACT: Lorus Therapeutics
Inc.: Dr. Saeid Babaei, (416) 798-1200 ext. 490,
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