ConjuChem Biotechnologies Inc.
TSX : CJB

ConjuChem Biotechnologies Inc.

November 20, 2007 15:54 ET

ConjuChem Biotechnologies Inc. Announces $22 Million Bought Deal Financing

MONTREAL, QUEBEC--(Marketwire - Nov. 20, 2007) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

ConjuChem Biotechnologies Inc. (TSX:CJB) today announced that it has entered into a bought deal agreement with Dundee Securities Corporation as lead underwriter pursuant to which Dundee has agreed to purchase 22,000 Units comprised of convertible debentures and warrants, representing gross aggregate proceeds of $22,000,000 to the Company. The $1,000 principal amount 8.00% subordinated unsecured convertible debentures mature on December 31, 2010 (the "Debentures") and are convertible into common shares at any time prior to maturity at a conversion price of $0.16 (the "Conversion Price"). For every share issuable on conversion of the Debentures, the holder will receive 1/4 of a Common Share Purchase Warrant. Each whole Warrant is exercisable for a period of 4 years from the closing of the offering at a purchase price of $0.25 per share (the "Warrants"). ConjuChem has granted Dundee an option, exercisable in whole or in part at any time prior to 24 hours before the closing of the offering, to purchase for resale an additional 3,000 Units for gross proceeds of up to $3,000,000 (the "Underwriters' Option"). Closing is expected on or about December 13, 2007 (the "Closing Date").

The net proceeds of the offering will be used for the advancement of the Company's PC-DAC™:Exendin-4, working capital and general corporate purposes.

As part of the Offering, ConjuChem has reached an agreement with Baker Bros. to redeem their outstanding Series 1 and Series 2 convertible Notes utilizing the funds currently held in escrow for this purpose. It is expected that repayment of the Notes will occur prior to Closing.

THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY THE SECURITIES, NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

About ConjuChem Biotechnologies Inc.

ConjuChem, developer of next generation medicine from therapeutic peptides, is creating long-acting compounds based on bioconjugation platform technologies. When applied to peptides, the Company's systemic DAC™ and PC-DAC™ technologies enable the creation of new drugs with significantly enhanced therapeutic properties as compared to the original peptide. A detailed description of the Company can be viewed on the Company's website at www.conjuchem.com.

FORWARD-LOOKING STATEMENTS

Some of the statements made herein may constitute forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause ConjuChem's actual results, performance or achievements to be materially different from those expressed or implied by any of the Company's statements. Actual events or results may differ materially. We disclaim any intention, and assume no obligation, to update these forward-looking statements.

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