Osta Biotechnologies Inc.
TSX VENTURE : OBI

Osta Biotechnologies Inc.

April 02, 2012 13:01 ET

Osta Biotechnologies Experiencing Financial Constraints

- Filing of 2011 financial statements and MD&A delayed

- Company to continue to seeking financing or strategic alternatives

MONTREAL, QUEBEC--(Marketwire - April 2, 2012) -

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) announces that as a result of limited financial resources, it will not be in a position to file its audited financial statements as at and for the year ended December 31, 2011, accompanying management's discussion and analysis, and related CEO and CFO certification for the year ended December 31, 2011 within the prescribed 120 day period as prescribed under National Instrument 51-102 and National Instrument 51-109, respectively (the "2011 Annual Filings"). Osta cannot presently estimate when it will be in a position to file the 2011 Annual Filings.

Management has spent significant effort during the last several months reviewing all aspects of the Company's affairs in an effort to identify and secure additional financial resources, including by way of debt, equity or strategic partnership. Unfortunately, none of these efforts have been successful so far and there can be no guarantee that such efforts will be successful in future. Management and the Board of Directors have concluded that it is in the best interests of the Company to reduce expenses and limit operations with a view toward conserving all available cash until such time as adequate funding can be secured or an acceptable alternative is identified. Accordingly, the Company must delay the preparation and filing of audited financial statements for the time being.

Pursuant to Osta's disclosure policies and procedures, employees and insiders of the Company are prohibited from trading until the second day following the issuance of a news release disclosing the Company's annual results for the year ended December 31, 2011. If the Company is not able to secure additional financing allowing it to prepare and file its 2011 Annual Filings, then the securities of Osta will likely be subject to a cease trade order and, consequently, trading of the common shares on the TSX Venture Exchange will be suspended.

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.

Forward looking statements:

Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company or the industries in which it operates to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, the words "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current expectations of the management of the Company with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those expressed or implied by those forward-looking statements. These risks and uncertainties include, but are not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, prices and other factors as are detailed from time to time, including, without limitation, under the heading "Risk Factors", in documents filed by the Company with the Canadian securities regulatory authorities which are available at www.sedar.com and to which readers of this press release are referred for additional information concerning the Company, its prospects and the risks and uncertainties relating to the Company and its prospects. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of the Company to be materially different from those contained in forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

The forward-looking information contained in this press release is current only as of the date of the press release. The Company does not undertake or assume any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

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