Afexa Life Sciences Inc.

Afexa Life Sciences Inc.

May 02, 2007 18:14 ET

CV Technologies Confirms Interim Cease Trading Order Extension by the Alberta Securities Commission as It Proceeds With Restatement

EDMONTON, ALBERTA--(CCNMatthews - May 2, 2007) - CV Technologies Inc. (the "Company" or "CVQ") (TSX:CVQ) today confirms that it has entered into a Consent Order with the Alberta Securities Commission (the "ASC").

As previously announced, the ASC issued an Interim Cease Trade Order on April 19, 2007 (the "Interim Order"), directing that all trading cease in respect of the securities of CVQ, which Interim Order would have expired May 4, 2007, unless further extended. The Consent Order extends the Interim Order until the earlier of the satisfaction of the conditions set forth below and June 15, 2007.

This action follows CVQ's April 11, 2007 news release announcing that the Company was voluntarily planning to restate its consolidated financial statements for the year ended September 30, 2006, as well as its interim consolidated financial statements for the first quarter of fiscal 2007 (collectively, the "Financial Statements"), due to a revenue deferral issue in the U.S. market.

The conditions set forth in the Consent Order include that: (i) all deficiencies, inconsistencies and omissions in CVQ's previously delivered Financial Statements have been corrected by filing revised or amended Financial Statements pursuant to Part 4 of National Instrument 51-102 Continuous Disclosure Obligations ("NI 51-102") that are in accordance with acceptable accounting principles as required by section 3.1 of National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency; (ii) CVQ has issued a press release pursuant to Part 11 of NI 51-102 explaining the reasons for requiring revised or amended Financial Statements; (iii) CVQ is not in default of any other filing requirements under the Securities Act (Alberta); and (iv) Staff of the ASC has confirmed in writing that CVQ has satisfied the three foregoing conditions. If all four conditions are not satisfied by June 15, 2007, CVQ and Staff of the ASC are directed to appear before the ASC for further advice and direction.

The Company is also subject to a similar Temporary Order of the Ontario Securities Commission (the "OSC") dated April 23, 2007, which ceases all trading in and all acquisitions of the securities of CVQ, whether direct or indirect, for a period of 15 days from April 23, 2007. A hearing before the OSC in respect of the Temporary Order is scheduled for May 4, 2007.

"We are working diligently with external auditors to complete the restatement of our Financial Statements with the objective of filing them in advance of the expiry date of the Interim Order," said Dr. Jacqueline Shan, President, CEO and Chief Scientific Officer of CVQ. "This extension allows us additional time to complete this task."

About CV Technologies Inc.

CV Technologies, founded in 1992, is a global leader in the development and commercialization of naturally derived, evidence based, natural therapeutics for disease prevention and health maintenance. The Company's lead product - COLD-fX - strengthens the immune system and is widely used in Canada as a leading over the counter (OTC) remedy for preventing and relieving cold and flu infections. A comprehensive treatment claim approved by Health Canada for COLD-fX states that it "helps reduce the frequency, severity and duration of cold and flu symptoms by boosting the immune system." Comprehensive therapeutic claims require support by the highest level of scientific evidence: randomized, double-blind, placebo-controlled clinical trials. In the United States COLD-fX is marketed as an immune enhancing dietary supplement. COLD-fX, with its unique and patented mechanism of action was standardized according to the Company's ChemBioPrint (CBP) process. The CBP process precisely identifies the chemical profile and biological activity of multi-active compounds in evidence-based natural therapeutics. The CBP process also provides a manufacturing protocol that ensures each batch of the final product delivers verifiable and provable health benefits. International manufacturing, marketing, patents and trademarks are held by fX Life Sciences International GmbH. COLD-fX is distributed and sold in the U.S. by COLD-fX Pharmaceuticals (USA) Inc. Both companies are wholly-owned subsidiaries of CV Technologies Inc. fX Life Sciences International GmbH and COLD-fX Pharmaceuticals (USA) Inc. maintain a call center for product information: 1-877-490-3300.

This news release contains forward-looking statements that are subject to risks and uncertainties that may cause actual results or events to differ materially from the results or events predicted in this release, including those comments predicting the timing and conclusion of any regulatory meetings and the results of restated financials. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. For a more in-depth account of risks and uncertainties, please refer to documents filed with the securities regulators on, including the Company's news release of April 11, 2007. Subject to its obligations under applicable law, the Company assumes no duty to update this disclosure. The Company is a 12g3-2(b) SEC registrant.

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