EDMONTON, ALBERTA--(Marketwire - Aug. 10, 2011) - Afexa Life Sciences Inc. ("Afexa" or the "Company") (TSX:FXA) - the maker of COLD-FX(R) – was today advised that Paladin Labs Inc. ("Paladin") has filed documents with Canadian securities authorities formally commencing an unsolicited tender offer to acquire all of the outstanding common shares of the Company for either cash consideration of Cdn $0.55 per common share or 0.013 of a Paladin share for each common share ("the Offer").
The Company's Board of Directors believes the Paladin Offer significantly undervalues Afexa's business. The Board has established a special committee of the Board to review the Offer. Therefore, the Board strongly urges Afexa shareholders not to deposit any shares to the Paladin Offer and not to take any action with respect to the Paladin Offer until the Board has completed its full review and consideration of the Offer.
The Company's Board of Directors will issue a Directors' Circular concerning the Paladin Offer within the next fifteen calendar days. The Directors' Circular will contain important information including the formal recommendation of the Board of Directors of Afexa with respect to the Paladin Offer and the detailed reasons therefor.
Scotia Capital Inc. is acting as exclusive financial advisor to the Company. Legal counsel to Afexa is Fraser Milner Casgrain LLP.
About Afexa Life Sciences Inc.
Afexa Life Sciences Inc., founded in 1992, strives to deliver the most trusted health brand on the planet through pioneering evidence-based natural medicines that empower people to achieve their health potential. The Company's patented ChemBioPrint® discovery and standardization technology enables the development of effective and safe medicines from complex natural sources, while ensuring reliable health benefits and batch-to-batch consistency. COLD-FX®, a ChemBioPrint product, is the Company's flagship product and Canada's leading over-the-counter (OTC) cold and flu remedy. It is officially indicated in Canada to help reduce the frequency, severity and duration of cold and flu symptoms by boosting the immune system. COLD-FX has a product license (NPN) and is supported by scientific evidence, including randomized, double-blind, placebo-controlled clinical trials.