IntelGenx Technologies Corp.
OTC Bulletin Board : IGXT
TSX VENTURE : IGX

IntelGenx Technologies Corp.

June 18, 2009 16:01 ET

IntelGenx Technologies Corp. Announces $4.5 Million Special Warrants Financing

SAINT LAURENT, QUEBEC--(Marketwire - June 18, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES

IntelGenx Technologies Corp. ("IntelGenx" or the "Company") (TSX VENTURE:IGX)(OTCBB:IGXT) is pleased to announce that it has entered into an agreement with a syndicate of dealers comprising Paradigm Capital Inc., which will lead the syndicate, Union Securities Ltd. and Bolder Investment Partners, Ltd. (the "Agents"), to complete an offering of Special Warrants by way of private placement (the "Offering"). The Agents have been engaged on a best efforts, agency basis to raise gross proceeds of up to $4.5 million, at an issue price of Cdn.$0.40 per Special Warrant ("Special Warrants").

Each Special Warrant will be exercisable, for no additional consideration, for one Common Share of IntelGenx and one Warrant, and will expire on the earlier of: five business days following the later of a receipt being issued in respect of a final prospectus filed in certain Canadian jurisdictions and a registration statement filed with the United States Securities & Exchange Commission ("SEC") being declared effective; and four months following the closing date of the offering. Each Warrant will entitle its holder to purchase one additional Common Share for US$0.80 and will expire 36 months after closing. Each Special Warrant will be subject to statutory resale restrictions and absent registration of the securities with applicable securities regulators and the clearing of the prospectus in Canada, neither the Special Warrants nor the underlying securities may be traded in the United States during the period of six months, and in certain cases twelve months, following closing, and in Canada during the period of four months following closing.

Under the agreement, the Company will file the prospectus in certain Canadian jurisdictions, which will qualify for distribution the Common Shares and Warrants upon exercise of the Special Warrants, among other securities. The Company will also file a registration statement with the SEC in respect of the Common Shares and Warrants underlying the Special Warrants, among other securities. In the event that 120 days following closing, receipts have not been issued in respect of the prospectus by applicable Canadian securities authorities and the registration statement is not declared effective by the SEC, each Special Warrant will be converted, at no additional cost, to 1.1 Common Shares and 1.1 Warrants (instead of one Common Share and one Warrant).

In addition to commissions for funds raised under the offering, IntelGenx has also agreed to grant compensation options and to issue Common Shares to the Agents in connection with the Offering.

IntelGenx plans to use the net proceeds from the Offering for commercialization and development of drugs to be delivered using IntelGenx' patented and proprietary oral drug delivery technologies, for repayment of outstanding convertible notes, working capital and capital expenditures and R&D.

The Offering is scheduled to close on or about June 30, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The securities discussed herein have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold absent registration under the U.S. Securities Act or an applicable exemption from the registration requirements thereof. This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or an exemption therefrom.

ABOUT INTELGENX TECHNOLOGIES CORP.:

IntelGenx Technologies Corp. is a drug delivery company focused on the development of oral controlled-release products as well as novel rapidly disintegrating delivery systems. IntelGenx uses its unique multiple layer delivery system to provide zero-order release of active drugs in the gastro-intestinal tract. IntelGenx has also developed novel delivery technologies for the rapid delivery of pharmaceutically active substances in the oral cavity based on its experience with rapidly disintegrating films. IntelGenx's research and development pipeline includes products for the treatment of pain, hypertension, osteoarthritis, and depressive disorders. More information is available about the company at www.intelgenx.com.

FORWARD LOOKING STATEMENTS:

This document may contain forward-looking information about IntelGenx's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about IntelGenx's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. All forward looking statements are expressly qualified in their entirety by this cautionary statement. Because these forward-looking statements are subject to a number of risks and uncertainties, IntelGenx's actual results could differ materially from those expressed or implied by these forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in IntelGenx's annual report on Form 10-K for the fiscal year ended December 31, 2008, filed with the United States Securities and Exchange Commission and available at www.sec.gov, and also filed with Canadian securities regulatory authorities and www.sedar.com. IntelGenx assumes no obligation to update any such forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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