WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc.

December 11, 2009 16:04 ET

WEX Pharmaceuticals Inc. Announces Rights Offering to Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2009) -


WEX Pharmaceuticals Inc. (TSX:WXI) ("WEX" or the "Company") today announced that it has filed a final short form prospectus in connection with a distribution to its shareholders of rights ("Rights") exercisable to acquire restricted voting shares of the Company (the "Rights Offering").

Under the Rights Offering, holders of restricted voting shares of the Company as of the record date of December 23, 2009 will receive one Right for each restricted voting share held as of the record date. Each one Right will entitle the holder thereof to purchase 1.5 restricted voting shares of the Company (the "Basic Subscription Right"). The subscription price per restricted voting share will be $0.13. The Rights will expire at 4:00 p.m. (Vancouver time) January 22, 2010 (the "Expiry Date").

Holders of the Rights who fully exercise their Rights under the Basic Subscription Right will be entitled to subscribe pro rata for additional restricted voting shares (the "Additional Subscription Privilege"), if available, that were not subscribed for initially on or before the Expiry Date.

The Rights and the restricted voting shares issuable upon the exercise of the Rights will be listed on the Toronto Stock Exchange ("TSX"), subject to WEX fulfilling all listing requirements of the TSX. The Rights will be listed on the TSX under the symbol WXI.RT. Trading in the Rights will commence on December 21, 2009 and cease at noon (Toronto time) on the Expiry Date.

If all of the Rights are exercised, it is anticipated that the Company will issue an aggregate of 265,483,177 restricted voting shares, for gross proceeds of approximately $34.5 million. The Company expects to use the net proceeds from the Rights Offering to fund research and development activities and for general working capital purposes.

Further details regarding the Rights Offering and the procedures to be followed by holders of Rights can be found in the final prospectus available on SEDAR at www.sedar.com under the Company's profile.

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: no purchase commitments for the Rights Offering; dilution; no assurance of a trading market for the Rights and Restricted Voting Shares; 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.

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