Osta Biotechnologies Inc.

Osta Biotechnologies Inc.

August 31, 2011 18:49 ET

Osta Announces a Correction in Interim Statements

MONTREAL, QUEBEC--(Marketwire - Aug. 31, 2011) -

The issue of this press release is limited to Canada only. This press release should not be issued in the United States through U.S. news wire agencies.

Osta Biotechnologies Inc. (TSX VENTURE:OBI) has determined today that the financial statements for the period ended March 31, 2011 that were originally issued, contained an error with respect to the impact of the transition to IFRS regarding research funds awarded to the Company in October, 2008.

Under Canadian GAAP, the Company classified the research funds received as a financial liability held for trading. Under IFRS, the research funds received must be classified as equity.

As a result of this reclassification, the net loss and comprehensive loss has decreased from $162,887 to $157,982. The loss per share has decreased from $0.0037 per share to $0.0036 per share.

The Company is in the process of revising the financial statements for the 3 months ended March 31, 2011 and will reissue and file on SEDAR restated financial statements and management discussion and analysis for such period as soon as possible.

In other news, the Company announces that its Board of Directors has granted stock options in respect of an aggregate of 100,000 common shares to one of its officers. The options were granted under the Company Stock Option Plan. The exercise price of the options is $0.10 per share, being higher than the closing price of the common shares of the Company on the TSX Venture Exchange at the time of grant. The options will vest in two equal tranches over a twelve-month period and will expire in ten years.

About Osta Biotechnologies Inc.

Osta is a biopharmaceutical company listed on the TSX Venture Exchange currently focusing on developing therapeutics for Cancer and Alzheimer's disease.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Osta Biotechnologies Inc.
    Dr. Ajay Gupta
    Chairman & CEO
    (514) 626-9519

    Osta Biotechnologies Inc.
    Mr. William Waks
    CFO and VP Finance
    (514) 817-3380