Ambrilia Biopharma Inc.

Ambrilia Biopharma Inc.

August 11, 2009 12:17 ET

Ambrilia Biopharma Inc.: Late Filing of Second Quarter 2009 Financial Results

MONTREAL, QUEBEC--(Marketwire - Aug. 11, 2009) - Ambrilia Biopharma Inc. (TSX:AMB) announced today that the filing of its interim financial statements, management's discussion and analysis and related CEO and CFO certifications for the second quarter ended on June 30, 2009 (the "Interim Filings"), will be delayed beyond the filing deadline of August 14, 2009.

On July 31, 2009, Ambrilia received protection under an initial order (the "Order") granted pursuant to the Companies' Creditors Arrangement Act (Canada) ("CCAA"). As a result of Ambrilia's ongoing review process while under CCAA protection, there is a high degree of measurement uncertainty with respect to the appropriate carrying value of certain of Ambrilia's assets on its balance sheet and as a result Ambrilia is unable to prepare its Interim Filings.

Ambrilia intends to file with securities regulatory authorities throughout the period in which it is in default, the same information it provides to its creditors when the information is provided to the creditors and in the same manner as it would file a material change report. While under CCAA protection, Ambrilia's Board of Directors maintains its usual role and its management remains responsible for Ambrilia's day-to-day operations, under the supervision of the Court-appointed monitor.

Currently, the stay period under the Order will end on August 31, 2009, but may be extended upon further order of the Quebec Superior Court. Ambrilia plans to remedy the default and file the Interim Filings as soon as it is able to do so. However, Ambrilia cannot confirm with certainty when it will be able to remedy the default and file its Interim Fillings.

Ambrilia also intends to satisfy the provisions of the alternate information guidelines of section 4.4 of National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203") as long as it is in default of the filing requirements. The present release constitutes a "default announcement" made under section 4.3 of NP 12-203.

Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the outcome of Ambrilia proceedings under the CCAA.

About Ambrilia Biopharma Inc.

Ambrilia Biopharma Inc. (TSX:AMB) is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology. Ambrilia's product portfolio is comprised of oncology and antiviral assets, including two new formulations of existing peptides for cancer treatment, a targeted delivery technology for cancer, an HIV protease inhibitor program as well as HIV integrase and entry inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal. For more information, please visit the Company's web site:

Ambrilia's forward looking statements

This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward-looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the Company's filings. We refer you to the Risk Factors section of the Company's annual information form which contains a more exhaustive analysis of the risks and uncertainties that are generally connected to the business of the Company. Such statements are also based on various assumptions, including the successful and timely completion of clinical studies on Ambrilia's products demonstrating efficacy and safety for human use, their successful commercialization within the forecasted timelines and the attainment of the forecasted milestone payments and other revenues. Failure to complete a strategic or financial transaction as a result of the review of strategic alternatives could have a material adverse effect on Ambrilia. While Ambrilia anticipates that subsequent events and developments may cause Ambrilia's views to change, Ambrilia specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws.

Contact Information