BURNABY, BC,
April 16, 2014 /CNW/ - Welichem
Biotech Inc. (the "Company") (TSX-V: WBI) has become aware, through
the filing on SEDAR on April 15, 2014
of a take-over bid circular dated April 11,
2014, that LJ Resources Co., Ltd. ("LJ"), is making an
unsolicited formal offer to purchase all of the outstanding Common
shares of the Company at a price of $0.15 per Common share (the "Offer"). The
Company notes the last reported closing price for the Common shares
on the TSX Venture Exchange is $0.33.
Due to the fact that LJ has owned securities
carrying more than 10% of the voting rights attached to all issued
and outstanding securities of the Company within the past year, the
Offer appears to constitute an "insider bid" under the policies of
the TSX Venture Exchange. In addition, the Company is aware
that Lei Lv, who is currently a director of the Company, and
James Dai, who was a director of the
Company until January 2, 2014, are
employees of LJ.
The Board of Directors of the Company has formed
a special committee of independent directors to consider the Offer.
The Company urges its shareholders not to take any action in
respect of the Offer until shareholders have received further
communication from the Board of Directors of the Company.
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 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.