Ambrilia Biopharma Inc.

Ambrilia Biopharma Inc.

July 31, 2009 15:41 ET

Ambrilia Obtains Court Order for Creditor Protection


MONTREAL, QUEBEC--(Marketwire - July 31, 2009) - Ambrilia Biopharma Inc. (TSX:AMB) announced today that the Superior Court of Quebec (Commercial Division) has granted an initial order (the "Order") to it under the Companies' Creditors Arrangement Act (Canada) ("CCAA").

The CCAA protection granted to Ambrilia pursuant to the Order will stay creditors, suppliers and others from enforcing any rights against Ambrilia and its subsidiary, Cellpep Pharma inc., and will afford Ambrilia and its subsidiary the opportunity to restructure their affairs.

The Order also allows Ambrilia to postpone its annual and special meeting of shareholders, previously scheduled to be held on August 4, 2009, until a further date which shall be within a three-month period following the emergence of Ambrilia from protection under the CCAA.

Raymond Chabot inc. is the court appointed Monitor for the CCAA proceedings and will monitor the ongoing operations of Ambrilia and its subsidiary, assist with the development and filing of a plan of reorganization, compromise and/or arrangement with its creditors and other stakeholders, liaise with creditors, partners and other stakeholders and report to the court. Fasken Martineau DuMoulin LLP is acting as legal counsel for Ambrilia and its subsidiary.

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.

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