Inex to review Tekmira Pharmaceuticals spin out

By Elaine Rigoli

Tampa, Fla., July 11 - Inex Pharmaceuticals Corp. said it will revise its plan of arrangement for spinning out Tekmira Pharmaceuticals Corp., in which Inex common shareholders would own 100% of Tekmira under the new reorganization and Tekmira would own 100% of Inex's technology, cash, products and partnership alliances.

"Our shareholders will benefit from owning 100% of Tekmira and will still have an equity position in Inex. Tekmira will be debt-free and have a diversified product portfolio including the significant partnerships with Hana Biosciences, Inc. and Alnylam Pharmaceuticals, Inc. We believe this provides much greater value to our shareholders than our previous Tekmira spin-out plans," president and chief executive officer Timothy M. Ruane said in a news release.

Under the previous plan, Inex's targeted immunotherapy technology platform and associated products and some cash were to be transferred to Tekmira and 69% of Tekmira shares were to be distributed to Inex common shareholders.

Completion of this revised plan would allow Inex, having no pharmaceutical assets, to complete a financing with an investor group led by Sheldon Reid, a co-founder of Energy Capitol Resources Ltd., which will invest up to $5.6 million by way of convertible debentures.

Upon conversion of the debenture following the completion of the reorganization, Energy Capitol will hold 100% of non-voting shares in Inex and 80% of the total number of shares outstanding.

Therefore, current Inex common shareholders will own 20% of the equity of Inex after the spin-out of Tekmira.

Energy Capitol plans to raise additional capital and acquire a new business for Inex.

The money received by Inex as part of the corporate reorganization will be paid to the previous holders of Inex's convertible debt as per the note purchase and settlement agreement announced June 20.

Inex is a Vancouver, B.C.-based biopharmaceutical company developing and commercializing proprietary drugs and drug-delivery systems to improve the treatment of cancer.

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