Warnex Provides an Update on its Operations
Laval, Quebec, April 4, 2012 - Warnex Inc. (TSX:WNX) ("Warnex") wishes to provide the following update regarding its operations.
Warnex announces that it has reached an agreement with Persistence Capital Partners LP ("PCP"), the holder of its outstanding debentures (the "Debentures"), regarding the conversion of a portion of the Debentures and the repayment of the remaining balance. The conversion of CDN$725,000 in principal amount of the Debentures into an aggregate of 46,178,344 common shares of Warnex ("Common Shares") pursuant to a notice of conversion received by Warnex on March 16, 2012, will be effected on or about April 5, 2012. As a result, PCP will own approximately 51.56% of the outstanding Common Shares of Warnex.
Furthermore, PCP has agreed to allow Warnex until April 13, 2012 to repay the remaining balance of approximately $959,420 owing under the Debentures, with the expectation that by such time, Warnex will be able to put into place an operating line of credit with a financial institution for up to CDN$2,000,000 in order to provide Warnex with the funds necessary to repay such outstanding balance and to support future working capital requirements. While Warnex is well advanced towards putting this credit facility into place, no assurances can be given that Warnex will be successful in this regard.
Appointment of Interim Chief Executive Officer
Warnex also announces that Marc Lebel has been appointed as the Interim Chief Executive Officer of the company. Mr. Lebel is the co-founder of Anapharm, a Phase I contract research organization that employed as many as 1,200 personnel. Mr. Lebel was Executive Vice-President of Pharmanet from 2005 to 2007, following its acquisition of Anapharm. Mr. Lebel is currently a director of Acasti Pharma Inc. and Nuchem Inc. His primary role within Warnex will be to ensure the integrity of the company's operations as the Board of Directors continues its assessment of the strategic alternatives available for the company.
As a result of the new developments described above, the Toronto Stock Exchange has agreed to extend the deadline for the delisting of the Common Shares to April 16, 2012. Warnex continues to explore its various options in light of this scheduled delisting.
Warnex (www.warnex.ca) is a life sciences company devoted to protecting public health by providing laboratory services to the pharmaceutical sector. Warnex Analytical Services provides pharmaceutical and biotechnology companies with a variety of quality control services, including chemistry, chromatography, microbiology, method development and validation, and stability studies. Warnex Bioanalytical Services specializes in bioequivalence and bioavailability studies for clinical trials. Warnex has two facilities located in Laval and Blainville, Quebec.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For further information identifying known risks and uncertainties, relating to financial resources, liquidity risk, key customers and business partners, credit risk, foreign currency risk, government regulations, laboratory facilities, volatility of share price, employees, suppliers, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Warnex's most recent Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.
For more information, please contact:
Chairman of the Executive Committee
of the Board of Directors, Warnex Inc.
Tel: (514) 940-3610