PharmEng International Inc.
TSX VENTURE : PII

PharmEng International Inc.

April 27, 2007 13:13 ET

PharmEng International Inc. Closes Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - April 27, 2007) - PharmEng International Inc. ("PharmEng" orthe "Company") (TSX VENTURE:PII) and Shropshire S.A R.L. ("Shropshire") announcedtoday the completion of the previously announced financing by way of privateplacement for aggregate gross proceeds of CAD$3,020,000 (the "Private Placement").

Under the Private Placement, the Company issued and sold 15,100,000 units toShropshire at a price of CDN$0.20 per unit (each, a "Unit"). Each Unit consists of one common share in the capital of the Company (a "Common Share")and one half of one Common Share purchase warrant (the "Private PlacementWarrants") exercisable at a price of CDN$0.35 for a period of 24 months fromthe closing date.

The Private Placement Warrants and the Common Shares underlying the Units andissuable upon the exercise of the Private Placement Warrants will be subjectto a regulatory and TSX Venture Exchange hold period until August 28, 2007. A finders fee for the Private Placement in the amount of $241,600 was paid toBlackwood Consultants Inc.

At closing of the Private Placement, Shropshire, a company created under thelaws of Luxembourg and managed by Dr. Gerold Hoop, became an insider andcontrol person of PharmEng (each as defined in the Corporate Finance Manual of the TSX Venture Exchange). As a result of the Private Placement,Shropshire holds 20,000,000 Common Shares, representing approximately 31% ofthe total issued and outstanding Common Shares of PharmEng. In addition,Shropshire holds warrants to acquire an additional 10,000,000 Common Sharesof PharmEng. If all such warrants were exercised Shropshire would holdapproximately 40.1% of the total issued and outstanding Common Shares ofPharmEng.

Shropshire's purchases have been made for investment purposes. Shropshire,or entities controlled by Shropshire, may, subject to market conditions, makeadditional investments in, or dispositions of, securities of PharmEng in thefuture, including additional purchases of Common Shares. Currently, otherthan as described herein, there is no one acting jointly or in concert withShropshire with respect to the securities of PharmEng.

About PharmEng International Inc.

PharmEng International Inc., headquartered in Toronto, Canada, is a full-service consulting and contract manufacturing company that serves the pharmaceutical and biotechnology industries in North America and internationally. Consulting services include project management, engineering,GMP, validation, calibration, regulatory compliance and certified training.Contract manufacturing includes pharmaceutical support, formulation development, laboratory testing, and finished solid dosage and liquidproducts. PharmEng's shares trade on the TSX Venture Exchange under the symbol PII. To find out more about PharmEng International Inc. (TSX VENTURE:PII),visit our website at www.pharmeng.com.

About Shropshire

Shropshire is part of an estate planning structure. The sole votingshareholder is Wiltshire Holdings Limited, a Cayman Islands company that iswholly owned by Barbados Limited by Guarantee, a Guernsey company. Bird Song Anstalt, a Liechtenstein establishment, is the sole voting shareholder ofBarbados Limited by Guarantee. Bird Song Anstalt does not have anyshareholders and is managed by Dr. Gerold Hoop.

Forward-Looking Statements

Certain statements in this press release may include "forward-looking" statementswhich involve known and unknown risks, uncertainties and other factors which may causeactual results, performance or achievements of PharmEng to be materially differentfrom any future results, performance or achievements expressed or implied by suchforward-looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", andother similar terminology. The risks and uncertainties are detailed from time to timein reports filed by PharmEng with the securities regulatory authorities in all of the provinces and territories of Canada. New risk factors may arise from time to time andit is not possible for management to predict all of those risk factors or the extentto which any factor or combination of factors may cause actual results, performanceand achievements of PharmEng to be materially different from those contained inforward-looking statements. Given these risks and uncertainties, investors should notplace undue reliance on forward-looking statements as a prediction of actual results.

Contact Information

  • PharmEng International Inc.
    Charles Ivey
    Vice President
    (905) 415-3922 x 116
    Email: charles.i@pharmeng.com
    Website: www.pharmeng.com
    or
    Shropshire S.A R.L.
    c/o Amaco (Luxembourg) S.A.
    52 - 54 Avenue du X Septembre
    L-2550 Luxembourg
    Luxembourg