Inflazyme Pharmaceuticals Ltd.

Inflazyme Pharmaceuticals Ltd.

October 27, 2005 20:00 ET

Inflazyme Completes Corporate Reorganization and Raises an Additional $3.6 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 27, 2005) - Inflazyme Pharmaceuticals Ltd. (TSX:IZP) today announced the completion of the reorganization announced on September 20, 2005. In September, we raised an initial $3.4 million by restructuring one of our wholly-owned subsidiaries. Today, we completed the reorganization by selling all of the Company's holdings in this subsidiary for an additional $3.6 million. Total net proceeds from the reorganization are approximately $7 million.

Inflazyme still retains all of its intellectual property assets including the LSAIDs™, the PDE4 Inhibitors, Prodaptin™, APT070 and ATH. As a result of the sale, Inflazyme no longer has an ownership interest in the disposed subsidiary.

The $7,430,000 convertible debentures issued by the subsidiary in September 2005 remain as outstanding liabilities of the disposed subsidiary. The holders of these debentures do not have recourse to Inflazyme for those liabilities.

The proceeds from the sale of the holdings in the subsidiary are greater than the original $2.5 million announced in September. This was the sum that could have been realized by exercising a put option that was negotiated as part of the reorganization. The put option was not and will not be exercised.

Dr. Kevin Mullane, President and Chief Executive Officer of Inflazyme, commented that "The completion of this reorganization provides the Company with approximately $7 million in funding without issuing shares or debt. The proceeds will be used to advance our business plan, and at our current burn rate, it will provide sufficient cash until the end of calendar 2007."

Inflazyme Pharmaceuticals is a biopharmaceutical company pioneering medical breakthroughs to transform the lives of patients with respiratory and inflammatory diseases worldwide. Further information on the Company may be obtained from its website at

Statements in this news release other than historical information are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as the availability of resources, the timing and effects of regulatory actions, the strength of competition, the outcome of litigation and the effectiveness of patent protection. Additional information regarding risks and uncertainties is set forth in the current Annual Information Form for Inflazyme on file with the Canadian Securities Commissions.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this information.

Contact Information

  • Inflazyme Pharmaceuticals Ltd.
    Julie Rezler
    Sr. Director, Corporate Development
    (604) 279-8511 or Toll Free: 1-800-315-3660
    (604) 279-8711 (FAX)