Ambrilia Biopharma Provides Bi-Weekly Status Update and Announces Additional Cost-Cutting Actions and a Change to Its Board of Directors
MONTREAL, QUEBEC--(Marketwire - Dec. 14, 2009) - Ambrilia Biopharma Inc. (TSX:AMB) is providing today its bi-weekly Default Status Report under National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults ("Default Status Report").
On November 16, 2009, Ambrilia announced that the filing of its interim financial statements, management's discussion and analysis and related CEO and CFO certifications for the third quarter ended on September 30, 2009, was being delayed beyond the filing deadline thereof.
On August 11, 2009, Ambrilia had previously announced that the filing of its interim financial statements, management's discussion and analysis and related CEO and CFO certifications for the second quarter ended on June 30, 2009, was being delayed beyond the filing deadline thereof.
Ambrilia reports that, since its most recent default announcement on November 16, 2009, there have not been any material changes to the information contained therein, nor any failure by Ambrilia to fulfill its intentions with respect to satisfying the provisions of the alternative information guidelines, and there have been no additional defaults subsequent to such announcement. Further, there have been no material changes respecting Ambrilia and its affairs since its last bi-weekly Default Status Report dated November 30, 2009, other than those described below. Ambrilia intends to file, if required, its next Default Status Report by December 28, 2009.
Ambrilia also announced today that Dr. Francois Lombard has resigned as a member of its Board of Directors, effective immediately. Mr. Frederic Porte, Chairman of the Board of Directors of Ambrilia stated "On behalf of the Board, I wish to thank Francois for his significant contribution to Ambrilia since he joined the Board in 2006."
Further, Ambrilia announced that it has taken additional cost-cutting actions resulting in the closure of its manufacturing facility and a further reduction in cash consumption and headcount. These actions will further preserve its cash into 2010.
Finally, Ambrilia announced that it has notified its landlord that it is terminating its lease agreement for its Verdun facilities effective December 31, 2009. Ambrilia will relocate to smaller and less expensive facilities given its reduced number of employees and activities. The Initial Order issued on July 31, 2009 by the Commercial Division of the Superior Court of Montreal in favour of, inter alia, Ambrilia under the Companies' Creditors Arrangement Act (Canada) ("CCAA") authorizes Ambrilia to repudiate any contracts as it deem appropriate.
Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the outcome of Ambrilia proceedings under the CCAA.
About Ambrilia Biopharma Inc.
Ambrilia Biopharma Inc. (TSX:AMB) is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology. Ambrilia's product portfolio is comprised of oncology and antiviral assets, including two new formulations of existing peptides for cancer treatment, a targeted delivery technology for cancer, an HIV protease inhibitor program as well as HIV integrase and entry inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal. For more information, please visit the Company's web site: www.ambrilia.com.
The Company is currently subject to court protection under the CCAA.
Ambrilia's forward looking statements
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward-looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, the timing and continuance of the CCAA protection, the uncertainty involved in the court proceedings and the implementation of any plan of arrangement under the CCAA, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the Company's filings. We refer you to the Risk Factors section of the Company's annual information form which contains a more exhaustive analysis of the risks and uncertainties that are generally connected to the business of the Company. Such statements are also based on various assumptions, including the successful emergence from the insolvency proceedings, the successful and timely completion of clinical studies on Ambrilia's products demonstrating efficacy and safety for human use, their successful commercialization within the forecasted timelines and the attainment of the forecasted milestone payments and other revenues. Failure to complete a strategic or financial transaction as a result of the review of strategic alternatives could have a material adverse effect on Ambrilia. While Ambrilia anticipates that subsequent events and developments may cause Ambrilia's views to change, Ambrilia specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws.
For more information, please contact
Ambrilia Biopharma Inc.
Richard La Rue, L.L.L., D.D.N.
Interim President & CEO
514-751-2003 ext 230