VANCOUVER,
Aug. 30, 2013 /CNW/ - Welichem
Biotech Inc. ("Welichem" or the "Company", TSX.V:
WBI) announces that it is making a substantial issuer bid pursuant
to which it will offer to purchase for cancellation up to
23,294,411 of its outstanding common shares ("Shares") at a
purchase price of $0.85 per Share for
an aggregate purchase price of up to $20
million (the "Offer"). The Offer is being made to
provide its shareholders with an opportunity for liquidity, as
trading on the TSX Venture Exchange has been historically low. The
Offer will remain open for acceptance until 5:00 p.m. (Toronto time) on October 9, 2013.
The Offer will not be conditional on any minimum
number of Shares being tendered to the Offer, but will be subject
to other conditions customary for transactions of this nature,
including receipt of all required regulatory approvals, including
the TSX Venture Exchange.
Welichem plans to mail the formal offer to
purchase, issuer bid circular and letter of transmittal, which
contain the terms and conditions of the Offer, instructions for
tendering Shares and the factors considered by the Company and the
Board in making its decision to authorize making the Offer, among
other things, on or about August 30,
2013. These documents will be filed with the applicable
Canadian securities regulators and will be available on SEDAR at
www.sedar.com and on Welichem's website at www.welichem.com.
Shareholders should carefully read the offer to purchase, issuer
bid circular and letter of transmittal prior to making a decision
to tender to the Offer.
The Laurel Hill Advisory Group Company has been
retained by the Company to act as depositary in connection with the
Offer. If shareholders have other questions related to the Offer,
they can contact Laurel Hill by
telephone at 1-877-452-7184 or by email at
assistance@laurelhill.com.
The Board has authorized the making of the
Offer. Neither the Company nor its Board makes any recommendation
to shareholders as to whether to tender or refrain from tendering
their Shares to the Offer. Shareholders are urged to consult their
own financial, tax and legal advisors and to make their own
decisions whether to tender or to refrain from tendering their
Shares to the Offer and, if so, how many Shares to tender.
This press release is for information purposes
only and is not an offer to buy or the solicitation of an offer to
sell any Shares. This document does not constitute an offer or a
solicitation to any person in any jurisdiction in which such offer
or solicitation is unlawful.
About Welichem Biotech Inc.
Welichem Biotech Inc. is a publicly-traded
biotechnology company developing therapeutic drugs in the fields of
autoimmune diseases and cancers. For a more complete business
and financial profile of the Company, interested parties are
encouraged to visit the Company's website, www.welichem.com.
Forward looking statements:
Certain statements and other information
included in this press release constitute "forward-looking
information" within the meaning of applicable Canadian securities
legislation. All statements in this press release, other than those
relating to historical information or current conditions, are
forward-looking statements, including information with respect to
the Offer. Forward-looking statements and forward-looking
information are based on information available at the time they are
made, underlying estimates and assumptions made by management and
management's good faith belief with respect to future events,
performance and results, and are subject to inherent risks and
uncertainties surrounding future expectations generally. Such risks
and uncertainties include, but are not limited to the satisfaction
or waiver of the conditions to the Offer, the extent to which
Shareholders determine to tender their Shares to the Offer, the
Company's ability to successfully implement its business strategy
and activities, changes to the regulatory and economic environment
in which the Company operates now and in the future, including
changes in accounting policies or pronouncements introduced by
regulatory authorities, changes in the Company's tax liabilities,
either through changes in tax laws or future assessments, and any
material disruption to the Company's operations, among other
things. Actual results and developments are likely to differ,
and may differ materially, from those expressed or implied by the
forward-looking information contained in this press release. Such
statements are based on a number of assumptions which may prove to
be incorrect, including, but not limited to, assumptions about
general business and economic conditions; interest rates and
foreign exchange rates; tax benefits and tax rates. Welichem
disclaims any intention or obligation to update or revise any
forward-looking statements in this press release as a result of new
information or future events, except as may be required under
applicable Canadian securities legislation.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Welichem Biotech Inc.