WEX Pharmaceuticals Inc.
TSX : WXI

WEX Pharmaceuticals Inc.

January 26, 2010 17:15 ET

WEX Pharmaceuticals Inc. Announces Rights Offering Fully Subscribed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 26, 2010) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Further to its press releases of November 27, 2009 and December 11, 2009 WEX Pharmaceuticals Inc. ("WEX" or the "Company") (TSX:WXI) announced that its previously announced rights offering (the "Rights Offering") has been fully subscribed for, and WEX will be issuing in total 265,483,177 restricted voting shares at $0.13 per share, for gross proceeds of approximately $34,512,813.

Under the Rights Offering, holders of restricted voting shares of the Company as of the record date of December 23, 2009 received one Right for each restricted voting share held as of the record date. Each one Right entitled the holder thereof to purchase 1.5 restricted voting shares of the Company (the "Basic Subscription Right"). Further, holders of Rights who fully subscribed under the Basic Subscription Right, were entitled to subscribe pro rata for additional restricted voting shares (the "Additional Subscription Privilege").

Pursuant to the Rights Offering, Pharmagesic (Holdings) Inc., an indirect wholly owned subsidiary of CK Life Sciences Int'l., (Holdings) Inc. ("CKLS") of Hong Kong, will acquire 259,241,700 restricted voting shares through the exercise of both its Basic Subscription Right and Additional Subscription Privilege, representing 97.6% of the shares issued under the Rights Offering, bringing its total shareholdings to 392,421,034 restricted voting shares or 88.7% of the total issued and outstanding restricted voting shares of WEX. CKLS has advised WEX that the acquisition of this additional equity stake is being made as a strategic investment and that CKLS may in the future increase or decrease its ownership in securities of WEX depending on the business and prospects of WEX and/or CKLS as well as market conditions.

WEX intends to use the proceeds from the Rights Offering to continue its research and development of tetrodotoxin (also referred to as TTX) and for general administrative costs and working capital.

Further details regarding the Rights Offering can be found in the final prospectus available on SEDAR at www.sedar.com under the Company's profile.

About CK Life Sciences Int'l., (Holdings) Inc.

CKLS is a listed company on The Stock Exchange of Hong Kong Limited (stock code: 0775). Bearing the mission of improving the quality of life, CKLS is engaged in the business of research and development, manufacturing, commercialization, marketing and selling of environmental and human health products, and water businesses and investment in various financial and investment products. CKLS is a member of the Cheung Kong Group. For additional information, please visit www.ck-lifesciences.com.

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.

Forward Looking Statements and Information

Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements and forward-looking information include, but are not limited to statements concerning: the Rights Offering; the anticipated gross proceeds from the Rights Offering and the use of the proceeds from the Rights Offering. Such statements and information include statements regarding the expectation and beliefs of management and appear in a number of places and often can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information include, but are not limited to statements or information with respect to known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and information. Such factors include, but are not limited to the following: control by principal shareholder, dilution; discretion in the use of the proceeds from the Rights Offering; sale of substantial amount of securities may have an adverse effect on the market price of such securities; condition of subscriptions under the Rights Offering; the Company's ability to acquire adequate financing and liquidity and capital resources to continue research and development of its technologies and products. See our prospectus dated December 11, 2009, annual report on Form 20-F and our quarterly and annual management's discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statements and information. There can be no assurance that forward-looking statements or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. All forward-looking statements and information made herein, are qualified by this cautionary statement.

THIS NEWS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD OR EXERCISED IN THE UNITED STATES OR BY U.S. PERSONS.

Contact Information

  • CK Life Sciences Int'l., (Holdings) Inc.
    Mrs. Wendy Tong Barnes
    Chief Corporate Affairs Officer
    852 2122 2062
    www.ck-lifesciences.com
    or
    WEX Pharmaceuticals Inc.
    Dr. Bin Huang
    President & CEO
    1-604-683-8800 or Toll Free: 1-800-722-7549
    1-604-683-8868 (FAX)
    wex@wexpharma.com
    www.wexpharma.com