BURNABY, BC,
June 2, 2014 /CNW/ - Welichem Biotech
Inc. (the "Company") (TSXV: WBI) announces today that it has filed
with applicable securities regulatory authorities a notice of
change (the "Notice of Change") to the directors' circular dated
April 29, 2014 issued by the board of
directors of Welichem in response to the unsolicited offer (the
"Offer") from LJ Resources Co., Ltd. ("LJ") to acquire all of
Welichem's common shares (the "Shares") at a price of $0.15 per Share dated April 11, 2014 (the "Original Circular"), as
amended by the notice of change dated May
28, 2014 (the "Amended Circular").
The board of directors of Welichem, on the
recommendation of its special committee, unanimously affirms its
recommendation that Welichem shareholders REJECT the Offer and NOT
TENDER their Shares to the Offer.
The Original Circular contained many
deficiencies, and therefore Welichem applied to the British
Columbia Securities Commission for a cease trade order with respect
to the Offer. As a result of negotiations conducted with LJ
after the filing of the application, the Amended Circular has
corrected some of these deficiencies, and therefore Welichem has
withdrawn its application. However, Welichem remains
concerned that the disclosure in the Amended Circular remains
inadequate and confusing, and that the Offer remains financially
inadequate and not in the best interests of Welichem
shareholders. Welichem notes that the Offer is still at a
significant discount to both the current trading price of the
Shares on the TSX Venture Exchange and the fair market value of the
Shares as determined by an independent valuator in the valuation
included in the Original Circular.
The Notice of Change is being mailed to Welichem
shareholders and is currently available on SEDAR under Welichem's
profile at www.SEDAR.com. Welichem shareholders are urged to
read the Notice of Change in its entirety.
About Welichem Biotech Inc.
Welichem Biotech Inc. is a publicly-traded
biotechnology company developing therapeutic drugs in the fields of
autoimmune diseases and cancer. For a more complete business and
financial profile of the Company, interested parties are encouraged
to visit the Company's website, www.welichem.com.
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING
STATEMENTS
All statements included in this press release
that address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. In particular, this document
contains forward-looking information and statements regarding the
Offer and the Special Committee's review of available information
relating to same.
These forward-looking statements involve
numerous assumptions made by the Company based on its experience,
perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in the circumstances. In addition, these statements involve
substantial known and unknown risks and uncertainties that
contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will prove
inaccurate, certain of which are beyond the Company's control,
including any possible amendments to the Offer or to the take-over
bid circular, further actions or announcements of the offeror or
other third parties, changes in laws and regulations, stock market
volatility and obtaining required approvals of regulatory
authorities. Readers should not place undue reliance on
forward-looking statements.
There can be no assurance that
forward-looking statements or information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Accordingly, you should not place undue reliance on the
forward-looking statements or information contained herein.
Except as required by law, we do not expect to update
forward-looking statements and information.
Neither the 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.