Adaltis Inc.

Adaltis Inc.

July 03, 2009 09:55 ET

Adaltis Inc. to File for Creditor Protection

MONTREAL, QUEBEC--(MARKETWIRE - July 3, 2009) - Adaltis Inc. (TSX:ADS), an international
in vitro diagnostic (IVD) company, today announced that it will seek court
protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA") in
Canada. Application under the CCAA will be heard by the Quebec Superior Court
on July 3, 2009.

Adaltis' Board of Directors authorized the Corporation to take this
action as the best alternative for the interests of the Corporation, its
employees, customers, creditors and other stakeholders. Operations outside of
Canada are not included in this filing. Adaltis' normal day-to-day operations
are expected to continue without interruption. Adaltis remains focused on
serving and supporting its customers during the restructuring process.

Adaltis has also announced that it has entered into a
Debtor-in-Possession (DIP) financing arrangement with Victoria Square Ventures
Inc. for new financing in an amount of up to $3 million. This financing is
subject to approval of the Quebec Superior Court.

Adaltis took this decision after thorough consultation with its advisors
and extensive consideration of all other alternatives. Adaltis will seek
protection under the CCAA as its current cash on hand would not allow it to
meet its current obligations.

Caution Concerning Forward-Looking Statements

This news release may contain forward-looking statements within the
meaning of applicable Canadian securities legislation. These statements
include those relating to statements that are not historical facts, and
reflect the current intentions, plans, expectations and beliefs of Adaltis'
management. Such forward-looking statements reflect management's current
beliefs and are based on information currently available to management.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors outside of management's control. A number of factors could cause
actual results of Adaltis to differ materially from the results predicted in
the forward-looking statements, including, but not limited to, risks
associated with obtaining regulatory registrations, affecting our ability to
achieve our strategy in China and other emerging markets, the successful and
timely completion of our ongoing research and development efforts in
particular related to Eclectica™, the launch of new products, the
uncertainties of market factors and regulatory processes to which our business
is subject, the ability to recover the value of our holdings of asset-backed
commercial paper following the restructuring of the asset-backed commercial
paper market, and the availability and terms of any financing. Further, actual
results or events could differ materially from those contemplated in
forward-looking statements as a result of the risks and uncertainties relating
to the CCAA proceedings (the "CCAA Proceedings") including: any negative
impacts on the Corporation's business, results of operations, financial
position, cash management arrangements and limitations on the Corporation's
ability to freely deploy its cash resources throughout the Corporation;
relationships with employees, customers, creditors, suppliers and other
stakeholders resulting from the CCAA Proceedings; the failure of the
Corporation to obtain an initial court order substantially on the terms
applied for or to obtain subsequent court orders extending the applicable
stays of action and proceedings against the Corporation to permit it to
propose a restructuring plan to affected creditors; the sufficient alternative
debtor-in-possession financing during the CCAA Proceedings; the failure of the
Corporation to obtain the requisite approvals of affected creditors or the
court for any restructuring plan, or to successfully implement such a plan or
obtain sufficient exit financing, if required, within the time granted by the
court, which could result in substantially all of its debt obligations
becoming immediately due and payable or subject to immediate acceleration,
leading to the likely liquidation of the Corporation's assets; that the
Corporation's existing common shares could have no material value in, and
following the approval of, a restructuring plan and could be cancelled; and
the potential that the Toronto Stock Exchange may suspend trading or delist
the Corporation's common shares on or from such stock exchange as a result of
the CCAA Proceedings. For additional information with respect to certain of
these and other factors, refer to our Annual Information Form under the
heading "Risk Factors" filed with the Canadian securities commissions.

The forward-looking statements contained in this news release represent
the expectations of Adaltis and its subsidiaries as at the date hereof and
accordingly are subject to change after such date. However, Adaltis and its
subsidiaries expressly disclaim any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable law.

About Adaltis Inc.

Adaltis is an international in vitro diagnostic company with a mission to
become a leading provider of in vitro diagnostic products in emerging markets,
with a particular focus on China.

With the strategic advantage of its "state of the art" reagent
manufacturing facility located in Shanghai, China, a complete IVD product
offering targeting emerging markets, and a strong international sales and
distribution platform, Adaltis is able to manufacture high-quality products in
a low-cost GMP environment, in order to service existing markets in Europe,
while providing a platform to penetrate the high-growth Chinese in vitro
diagnostic market.

Adaltis is headquartered in Montreal, with offices in China, Italy,
Mexico and other parts of the world.

Contact Information

  • Adaltis Inc.
    David Gardner
    Executive Vice President and
    Chief Financial Officer
    514-335-9922, ext. 228