Bioxel Pharma Inc.
TSX VENTURE : BIP

Bioxel Pharma Inc.

January 17, 2008 16:30 ET

Bioxel Pharma Inc./Moratorium on Repayment of Interest and Capital Under Certain Loans; Extension of a Loan Guarantee; and Issuance of 1,030,165 Warrants in Consideration Thereof

Issue of 630,137 Common Shares in Payment of Interest on its Outstanding 2002 Convertible Debentures

STE-FOY, QUEBEC--(Marketwire - Jan. 17, 2008) - Bioxel Pharma Inc. ("Bioxel" or the "Corporation") (TSX VENTURE:BIP) a leading manufacturer of taxane active pharmaceutical ingredients (APIs) and developer of targeted oncology drugs, announces that it has reached an agreement with Investissement Quebec with respect to certain loans in place. First, Investissement Quebec has agreed to a moratorium on the payment of approximately $130,000 of interest payable from January 1, 2008 to December 31, 2008 on the loan made by Investissement Quebec under the "BioLevier" program, which will be capitalized. Second, Investissement Quebec has agreed to a one year extension of its loan guarantee on a term loan made to Bioxel by its banker for the purchase of equipment to match the one year extension of such loan to June 2010, and a moratorium on the capital reimbursement of such loan for the period between January 1, 2008 and June 30, 2010, which represents a cash saving of approximately $385,000 for the Corporation. In consideration for this, the Corporation has issued to Investissement Quebec a total of 1,030,165 warrants to purchase an equivalent number of common shares at a price of $0.16 per share for a period of two years.

In addition, as part of this agreement, the Corporation agreed to pay the interest on the 15% Convertible Unsecured Debentures due in 2014 issued on November 21, 2007 through the issuance of common shares until June 30, 2009, subject to regulatory approvals and compliance with applicable securities laws.

Moreover, the Corporation also announced that it has issued 630,137 common shares to Societe Innovatech Quebec et Chaudiere-Appalaches ("Innovatech") in payment of $75,616 of interest payable on January 14, 2008 on the $1,000,000 principal amount outstanding convertible debentures held by Innovatech. The debenture was issued on July 15, 2002 as part of a financing totalling $2,500,000 of principal amount of convertible debentures., of which $1,000,000 remains outstanding.

FORWARD-LOOKING STATEMENTS

Some of the statements made herein may constitute forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause Bioxel's actual results, performance or achievements to be materially different from those expected or implied by any of Bioxel's statements. Actual events or results may differ materially. Bioxel disclaims any intention, and assumes no obligation, to update these forward looking statements.

ABOUT BIOXEL PHARMA

Bioxel is an emerging leader in biopharmaceuticals, focused on developing, manufacturing and marketing taxane pharmaceutical ingredients. Taxanes are used in drug products for the treatment of cancer and other diseases, including psoriasis, rheumatoid arthritis, Alzheimer's disease and cardiovascular disease. Bioxel sells cGMP paclitaxel and develops a portfolio of other generic taxane APIs and taxane-based proprietary products for improved cancer therapy.

The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.

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