Afexa Life Sciences Inc.

Afexa Life Sciences Inc.

September 18, 2009 17:45 ET

Afexa Confirms No Corporate Developments Account for Today's Trading Activity

EDMONTON, ALBERTA--(Marketwire - Sept. 18, 2009) - Afexa Life Sciences Inc. ("Afexa" or the "Company") (TSX:FXA) announced today, at the request of Market Surveillance on behalf of the Toronto Stock Exchange, that there is no internal unannounced corporate development to account for the uncharacteristic trading activity today.

On September 16, 2009 the Company announced that an agreement in principle had been reached in settlement of two proposed class action lawsuits commenced in Ontario and Alberta in August of 2007 against the Company, certain of its officers, former directors and former auditor.

The agreement in principle provides for the settlement, release and dismissal of all claims asserted against the Company, its former auditor and the individual proposed defendants. Afexa's anticipated contribution to the total settlement amount of $7.1 million is to be funded through its insurance coverage. The agreement in principle remains subject to final settlement documents and receipt of court approval. The settlement does not constitute any admission of liability by Afexa or its officers, directors and employees.

"Management considers this conditional settlement to be a very positive move for the Company. After two years the case had not been certified to proceed as a class action lawsuit. The Company decided to settle the action since, regardless of the outcome in the courts, this matter could have continued for many years and cost millions in legal fees. We believe investors are recognizing this settlement as a positive outcome," said Allan Cleiren, Afexa's Chief Financial Officer and Senior Vice President of Operations.


Afexa Life Sciences Inc. (formerly CV Technologies) founded in 1992, strives to transform people's lives to be healthier and happier by focusing on prevention and recovery through the use of evidence-based naturally derived health products. The Company's lead product, COLD-FX®, strengthens the immune system and is widely used as a leading over-the-counter remedy for helping to prevent and relieve cold and flu infections.

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