Vancouver, British Columbia -- August 16, 2002 Forbes Medi-Tech Inc. (TSE:FMI and NASDAQ:FMTI) announced today it has completed the sale of its pilot manufacturing plant in Amqui, Quebec for $1.6 million. Forbes will receive $400,000 in up front payments and will receive an additional $350,000 in May 2003. The remaining $850,000 will be amortized over a 7 year first mortgage plus interest at 6.5 per cent per annum.
"The Amqui plant sale represents an immediate and positive impact on our balance sheet," said Charles Butt, President and CEO of Forbes Medi-Tech Inc. "I am pleased to have the plant sale resolved as we can now focus on the joint-venture manufacturing facility in Pasadena, Texas."
Forbes purchased the Amqui plant in December 1998 to develop and scale up its phytosterol extraction and manufacturing technology. In January 2001, the Company entered into a joint venture with Chusei (U.S.A.) Inc. to form Phyto-Source LP to build and operate a significantly larger dedicated wood-based sterol manufacturing plant in Pasadena, Texas to produce Forbes' proprietary sterol-based cholesterol lowering functional food ingredient Reducol(tm) as well as other formulations of phytosterols for the food and non-food markets.
Forbes Medi-Tech Inc. is a biopharmaceutical company dedicated to the research, development and commercialization of innovative pharmaceuticals and nutraceutical products for the prevention and treatment of cardiovascular and related diseases. By extracting plant sterols from wood pulping by-products, Forbes has developed cholesterol-lowering agents to be used both as pharmaceutical therapeutics and functional food ingredients.
NASDAQ and the Toronto Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of the content of this News Release. This press release contains certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, which statements can be identified by the use of forward-looking terminology, such as, "will", "to" or comparable terminology referring to future events or results. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, without limitation, the Company's need for additional funding before September 30, 2002, which may not be available on acceptable terms or at all; uncertainty as to whether the payments due from the sale of the Amqui property will be made on a timely basis or at all; securitization and realization of security risks; manufacturing and marketing risks; partnership / strategic alliance risks; the risk of technical obsolescence; and research and development risks. See the Company's reports filed with the Toronto Stock Exchange, the B.C. and Ontario Securities Commissions, and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying other important factors with respect to such forward-looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from results referred to in forward-looking statements. The Company assumes no obligation to update the information contained in this press release.