Mistral Pharma Files a Proposal Under the Bankruptcy and Insolvency Act
August 19 2008 - 1:47PM
Marketwired
Mistral Pharma Inc. (TSX VENTURE: MIP) (the "Corporation")
announced that it has filed a proposal under the Bankruptcy and
Insolvency Act (Canada) (the "BIA"). If ratified, the proposal
shall effect a compromise of the Corporation's debts existing at
June 13, 2008, and effect an arrangement under Section 191 of the
Canada Business Corporation's Act. Demers Beaulne Inc. has agreed
to act as trustee to Mistral's proposal.
The proposal contemplates the investment of fresh funds by a
third-party in the Corporation in exchange for the cancellation of
all of the Corporation's issued and outstanding shares, options and
warrants (the "Existing Shares"), and the issuance of new shares in
favour of the investor. The sums to be received from the investor
will serve to fund the payments provided for under the
Corporation's proposal, and provide the Corporation with the
working capital it needs to meet its current operating
requirements. A meeting of the Corporation's creditors will be held
on September 4, 2008 to vote on the proposal. Should the creditors
approve the proposal in the required percentages, a hearing will be
held on September 15, 2008 and the Superior Court of Quebec will be
asked to ratify the proposal and authorize the arrangement, which
will cancel the Existing Shares.
In order to be accepted by its creditors, the Corporation's
proposal needs to be approved by a majority in number of the
creditors voting on the proposal, representing 66.66% in value of
those creditors' claims.
Forward-looking Statements
Except for historical information provided herein, this press
release may contain information and statements of a forward-looking
nature concerning the future performance of Mistral Pharma. These
statements are based on assumptions and uncertainties as well as on
management's best possible evaluation of future events. Such
factors may include, without excluding other considerations,
fluctuations in quarterly results, evolution in customer demand for
Mistral Pharma's products, the impact of price pressures exerted by
competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from
expected results.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this press release.
Contacts: Mistral Pharma Inc. Bertrand F. Bolduc, B.Pharm., MBA
President and Chief Executive Officer 514-421-1717 #2224
bbolduc@mistralpharma.com Mistral Pharma Inc. Alain Provencher, CA,
CF Vice-President and Chief Financial Officer 514-421-1717 #2222
aprovencher@mistralpharma.com
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