Mistral Pharma Receives Notice of Default
MONTREAL, QUEBEC - Mistral Pharma today announced that it has received a notice of default and a notice to enforce security from MMV Financial Inc. ("MMV"), a senior secured creditor of the company. Pursuant to a credit agreement announced on October 16, 2006, Mistral obtained a US $ 1.5 M secured loan from MMV. As per the notice of default received, MMV requests the immediate payment of US $1.314M, on the basis that Mistral has failed to effect a principal and interest payment due on May 31, 2008. As per the notice to enforce security, MMV advised the Corporation that it reserves its rights to enforce its security, which can be effected only after the expiry of the 10-day period following the transmission of MMV's notice. Mistral's financial position does not currently allow it to effect the payment of US $1.314 M as requested by MMV.
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