First Generation Capital Inc. Acquires Convertible Note of Trimel Pharmaceuticals Corporation

TORONTO, ONTARIO--(Marketwired - July 17, 2014) - Mr. Ian Ihnatowycz announced today that he has acquired a US$25 million convertible note (the "Note") of Trimel Pharmaceuticals Corporation (the "Issuer") through his private investment holding company First Generation Capital Inc. (the "Offeror"). The Note, which pays interest at 9.5% plus the greater of: (a) LIBOR; and (b) 1.0%, and has an initial maturity date of July 16, 2015, is convertible into common shares of the Issuer, in whole or in part at any time after August 21, 2014, at a conversion price, subject to standard anti-dilution adjustments, of the US dollar equivalent of $0.62 (calculated using the July 15, 2014 Bank of Canada noon buying rate for US dollars of US$1 equals $1.0766). The purchase was made on a private placement basis from the Issuer.

The maximum number of common shares issuable on conversion of the Note is 37,746,796 (or approximately 23.14% of the total outstanding common shares following the purchase). If the maximum amount of the Note that may be converted was converted in accordance with its terms, the Offeror would hold a total of 76,403,093 common shares of the Issuer, corresponding to a securityholding percentage of approximately 38.04% (based on a total of 200,873,234 common shares outstanding following any such conversion, as advised by the Issuer).

The securities of the Issuer were acquired for investment purposes. Depending upon the circumstances, Mr. Ihnatowycz may, from time to time, acquire additional securities or related financial instruments of the Issuer or dispose of all or a portion of the securities or related financial instruments of the Issuer previously acquired.

Additional information is provided in the early warning report filed on www.sedar.com.

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