Luxor Developments Inc.
TSX VENTURE : LXR.P

Amorfix Life Sciences Ltd.

August 31, 2005 16:41 ET

Luxor and Amorfix Announce Mailing of Circular

CALGARY, ALBERTA--(CCNMatthews - Aug. 31, 2005) - Luxor Developments Inc. (TSX VENTURE:LXR.P) ("Luxor") and Amorfix Life Sciences Ltd. ("Amorfix") are pleased to announce that they have mailed the Joint Information Circular for Luxor's Annual and Special Meeting and Amorfix's Annual and Special Meeting to approve the previously announced amalgamation of the two companies. Both meetings will be held on September 20, 2005.

Background

Amorfix is an emerging theranostics company focused on the diagnosis and treatment of neurodegenerative diseases, where aggregated misfolded proteins (AMPs) are prevalent. These include Transmissible Spongiform Encephalopathies (TSE), such as Bovine Spongiform Encephalopathy (BSE or "mad cow disease") and the human form variant Creutzfeldt-Jakob Disease (vCJD), as well as degenerative diseases such as Alzheimer's Disease (AD), Amyotrophic Lateral Sclerosis (ALS) and Parkinson's Disease (PD). The company was formed in January 2004 to commercialize the discoveries of the epitope protection (EP) technologies at the University of Toronto discovered by Drs. Neil Cashman and Marty Lehto. These discoveries position the company to become the world authority on AMP diseases. The company will use this new knowledge to develop diagnostic kits, therapeutics and prophylactics for AMP diseases.

Our Team

The following are the current directors and officers of Amorfix who are also expected to be the directors and officers of the resulting amalgamated company ("Amalco"):

- Dr. George Adams, CEO and Director - previously with U of T Innovations Foundation, Boston Scientific, Pfizer, Corvita Corporation and the Canadian Red Cross;

- Dr. Neil Cashman, CSO, Director and Founder - Canada Research Chair, Neurodegenerative Diseases, UBC, Director of ALS clinics VGH/UBC, Jonas Salk Award, previously with U of T and Sunnybrook WCHSC;

- James Parsons, CFO - Trillium Therapeutics, previously with Lorus Therapeutics and KPMG;

- Vigen Nazarian, Director, of Business Development and Founder - University of Toronto, previously with Dupont/Pioneer International;

- Dr. Marty Lehto, Senior Scientist and Founder - previously with University of Toronto;

- Dr. Joachim Ostermann, Director of R&D and Founder - previously with Axela Biosensors, Caprion Pharmaceuticals;

- David Raffa, Director of Corporate Finance and Founder - BC Advantage Funds, Protox Therapeutics

In addition to the two Board members noted above, Drs. Adams and Cashman, Dr. Don Rix (MDS Metro McNair Laboratories, Cantest, Genome BC, Genyous, Resverlogix) and Graham Strachan (GLS, IBEX Biotechnologies, Lorus Therapeutics, Millenium Biologix, NIR, VIVUS) are also on the Board of Amorfix and will be on the Board of Amalco. Don McCaffrey (CEO and President of Resverlogix) will join the Board on the completion of the amalgamation. Amorfix is extremely pleased with the quality and breadth of the team that has been assembled to lead the company through its next stage of development.

Business Update

As one of the first steps in commercializing its business, Amorfix's research group has completed its move from the University of Toronto to the incubator at Sunnybrook and Women's College Health Sciences Centre. Amorfix has received government approval to commission the level 2+ containment laboratory for its vCJD and BSE prion research and development. Amorfix has successfully transferred the ultra-sensitive dual bead assay to this new facility and will begin to study infectious animal prion samples imminently. As previously noted, the company's short-term goal is to develop diagnostic blood tests for both vCJD and BSE.

Management of Amorfix has initiated discussions with a number of potential partners to accelerate the development of its prion assay technologies and explore marketing partnerships. As these discussions formalize into agreements, the company will be communicating them to the public and its shareholders by press release. Amorfix is extremely pleased with the number of companies who have expressed initial interest in partnering with the company and will continue to explore these opportunities to accelerate its business.

The need for a blood screen for vCJD is becoming critical. Over 6,000 people all over the world have now received notification that the blood fractions they received were potentially contaminated with vCJD prions. The health of these people will be followed for life. It now appears that it might be possible to be an asymptomatic carrier of vCJD. One hundred people who gave blood have been notified that the people who received their blood subsequently came down from vCJD (http://news.bbc.co.uk/1/hi/health/4699349.stm). This has accelerated the implementation in the UK and Irish blood transfusions services to filter blood with Leukotrap® Affinity Prion Reduction Filter System (http://www.pall.com/news_articles_37316.asp). The blood transfusions services continue to seek a blood test for prions to fully protect the blood supply. There is no test currently available.

In its discussions with the Alberta Government, Amorfix has been informed that it currently costs over $600 to obtain and test an animal specimen for BSE. This cost does not include the $500,000 in equipment to perform the test or the millions needed to build a containment facility. Alberta is constructing a new level 3 facility in Edmonton. A more economical testing system such as a blood test will be required if large scale testing is to continue or expand. The company's goal is to produce a commercial test for BSE which may be conducted prior to the death of the animal, at a fraction of the cost of the current post-mortem test, and which can be done at any commercial blood testing laboratory. No such tests currently exist.

Corporate Update

Earlier this year, Luxor and Amorfix signed an amalgamation agreement pursuant to which they propose to amalgamate. On the completion of this amalgamation, Amalco will continue as a public company listed on the TSX Venture Exchange (the "Exchange") upon meeting the listing requirements of the Exchange. The deal with Luxor followed the completion of a $750,000 seed financing into Amorfix that has allowed Amorfix to continue with the development of its business while the amalgamation transaction proceeds.

As part of the amalgamation transaction, Amorfix undertook to raise a further $3,000,000 in financing (the "Financing") which would be available to the company post-amalgamation. Once the amalgamation has been approved by the Luxor and Amorfix shareholders, the parties receive final approval of the Exchange and the Financing has been completed, the amalgamated company will return to trading, under the Amorfix name. The company anticipates final Exchange approval near the end of September.

READER ADVISORY

This information release may contain certain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence the actual results are described in documents filed with regulatory authorities.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Luxor Developments Inc.
    Roger Kotch
    (780) 893-8073
    or
    Amorfix Life Sciences Ltd.
    George Adams
    (416) 557-4647
    or
    i 3 Capital Partners Inc.
    Owen C. Pinnell
    (403) 215-2427