Chemaphor Inc.

Chemaphor Inc.

August 24, 2006 17:12 ET

Chemaphor Announces Agreement with Atlantic Canada Opportunities Agency

OTTAWA, ONTARIO--(CCNMatthews - Aug. 24, 2006) - Chemaphor Inc. (TSX VENTURE:CFR), a biotechnology research and development company announced today that it has reached a final agreement with the Atlantic Canada Opportunities Agency ("ACOA") to provide Chemaphor with research and development funding through a loan of up to approximately $2.1 million.

"This financing with ACOA is a major boost to our plans for developing our OxBC-based nutriscience products and the underlying technology", stated Dr. Graham Burton, President and CEO of Chemaphor. "This is another major step in our goal of maximizing shareholder value by leveraging our technologies through partnerships to accelerate product development and reach commercialization"

"The ACOA support made available through the Atlantic Innovation Fund (AIF) will enable Chemaphor to establish a biological research and development operation in Prince Edward Island to take advantage of the rapidly growing expertise there in bioscience, nutriscience and health research. By co-locating in the National Research Council's new Institute for Nutrisciences and Health (INH) in PEI, Chemaphor will be able to collaborate directly with and benefit from the expertise and services of the scientific and technical staff in both the host INH and the neighbouring Atlantic Veterinary College of the University of Prince Edward Island."

Highlights of the ACOA Financing Arrangement

- ACOA will fund up to 75% of certain Chemaphor research and
development project expenditures over a four year period.

- Balances outstanding are repayable over a ten year period following
the project period and repayments are capped at 10% of revenues per

- Balances outstanding carry no interest as long as agreement is not
in default.

- No dividends can be paid until loan obligations are satisfied.

About Chemaphor

Chemaphor Inc. ( uses its core expertise in organic chemistry to develop premium products for the animal health, skin care cosmetics, pharmaceutical and specialty chemical markets. The Company's focus is on two proprietary products, a non pharmaceutical product OxBC and a lead cancer drug compound OCL-1. Chemaphor's goal is to fully exploit its proprietary platform of carotenoid oxidation compounds by finding recognized partners to commercialize its products in multiple, large markets.

Forward-looking statements

This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Chemaphor Inc. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Chemaphor Inc. does not assume any obligation to update or revise them to reflect new events or circumstances. (The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Investor Relations:
    Groupe Evolution Inc.
    Sylvain Archambault
    (514) 448-4887 or (866) 703-4887 (toll free)
    Chemaphor Inc.
    Dr. Graham Burton
    (613) 990-0969