WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc.

December 01, 2006 08:30 ET

WEX Concluded More Flexible Repayment Terms With Debenture Holders

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 1, 2006) - WEX Pharmaceuticals Inc. ("WEX" or the "Company") (TSX:WXI) today announces that it has concluded negotiations with the holders of its convertible debentures for more flexible repayment terms designed to relieve the Company's current financial situation.

In place of the fixed instalments presently required, WEX has agreed to pay an amount equal to 20% of the net proceeds received from all future funding events, such as share subscription proceeds, licensing fees, or milestone payments. This arrangement will continue unless WEX fails to make the payments as required, or until such time as the debenture holder, acting in good faith, determines that WEX's financial position has strengthened sufficiently to enable it to resume fixed instalment payments, at which time the parties shall return to the status pursuant to the Debentures Agreement and Amending Agreements, and the debenture holders will be entitled to exercise all of their legal rights.

WEX had approached its debenture holders at the time of the September 30 instalment becoming due to enter into negotiations to restructure the debenture terms. As a consequence of that WEX made only a partial payment of the instalment due on September 30, 2006, and following agreement in principle being reached on the restructuring, subsequently made the balance of the payment together with an additional amount of Cdn$ 81,732.

For further reference see the Management's Discussion and Analysis relating to the quarter ended on September 30, 2006 filed on SEDAR on November 15, 2006.
About WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc. is dedicated to the discovery, development, manufacture and commercialization of innovative drug products to treat pain. The Company's principal business strategy is to derive drugs from naturally occurring toxins and develop proprietary products for the global market. The Company's Chinese subsidiary sells generic products manufactured at its facility in China.

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