WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc.

July 12, 2010 08:00 ET

WEX Receives Unsolicited Proposal to Purchase From Pharmagesic

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2010) - WEX Pharmaceuticals Inc. (TSX:WXI) ("Wex") announced today that it has been advised of the proposal of Pharmagesic (Holdings) Inc. ("Pharmagesic"), a wholly owned subsidiary of CK Life Sciences Int'l (Holdings) Inc., to make an unsolicited take-over bid (the "Offer") for all of Wex's outstanding restricted voting shares not currently held by Pharmagesic at an offer price of CDN $0.13 cash per share. Pharmagesic is the holder of approximately 88.7% of Wex's issued and outstanding restricted voting shares and the sole Class A Share.

The board of directors of Wex has formed a special committee of independent directors (the "Special Committee") to review and respond to the proposal. As the Offer will be an "insider bid" under applicable securities laws the Special Committee will commission a valuation of Wex's restricted voting shares. Pharmagesic has advised that its preparedness to proceed with the Offer is subject to the outcome of the valuation. The Special Committee will be meeting shortly with its advisors to consider an appropriate response. No action is required by shareholders of Wex at this time. Wex will communicate further with shareholders in due course, including the results of the valuation.

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 proposal from Pharmagesic. 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: the proposal from Pharmagesic. 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.

Contact Information

  • WEX Pharmaceuticals Inc.
    Simon Anderson
    Director and Chair - Special Committee
    1 604 836 5535