Vancouver, British Columbia - April 29, 2003 Forbes Medi-Tech Inc. (TSE:FMI and NASDAQ:FMTI) announces that it has sold its pharmaceutical fine chemicals business which centered on process technologies for the production of the steroid intermediates androstenedione (AD) and androstadienedione (ADD). This divestiture marks another milestone in the Company's corporate restructuring mission that was implemented in mid-2002.
Forbes will receive gross proceeds of US$1.9 million for the sale. The Company received a US$200,000 deposit upon initiation of due diligence by the buyer. The due diligence has been completed and the buyer is now committed to concluding the sale by making a payment of US$750,000 in May 2003 and a final payment of US$950,000 in December 2003. The buyer is a large multi-national pharmaceutical company. This initiative is in line with Forbes streamlined focus on new drug development targeted toward cardiovascular disease and commitment to the Company's revenue generating nutraceutical business.
"Completion of this sale will result in an immediate infusion of cash into the Company and will free resources essential for tapping into our extensive product pipelines which have shown promising potential for further development," said Charles Butt, President, CEO Forbes Medi-Tech. "We are very pleased to be in a position to now focus on our real core competency in drug discovery and early stage drug development".
About Forbes Medi-Tech Inc.
Forbes Medi-Tech Inc. is a biopharmaceutical company dedicated to the research, development and commercialization of innovative prescription pharmaceutical and nutraceutical products for the prevention and treatment of cardiovascular and related diseases. Forbes' scientific platform is based on core sterol technology. By extracting plant sterols from by-products of the forestry industry, Forbes has developed cholesterol-lowering agents for use in pharmaceutical compounds, functional foods and dietary supplements.
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 News Release contains forward-looking statements concerning anticipated developments in the Company's business, which statements can be identified by the use of forward-looking terminology such as "commitment", "to be", "will be", "upon", "further", "expected", "now", "targeted", "potential" or the negative thereof or any other variations thereon or comparable terminology referring to future events or results. Forward-looking statements are statements about the future and are inherently uncertain, and the Company's actual results could differ materially from those anticipated in those forward-looking statements as a result of numerous factors, including without limitation, the need for performance of buyers; the ability of the buyer to complete the sale and fulfill its contractual obligations; the risk of technical obsolescence; the need for regulatory approval, which may be withdrawn or not be obtained in a timely matter or at all; the need for clinical trials, the occurrence and success of which cannot be assured; intellectual property risks; marketing/manufacturing and partnership/strategic alliance risks; product liability risks; the effect of competition; uncertainty of the size and existence of a market opportunity for the Company's products; the Company's need for additional future capital, which may not be available in a timely manner or at all; exchange rate fluctuations; government regulation; the ability of buyers to fulfill health claims of their products; as well as a description of other risks and uncertainties affecting the Company and its business, as contained in news releases and filings with the United States Securities and Exchange Commission and Canadian Securities Regulatory Authorities, any of which could cause actual results to vary materially from current results or the Company's anticipated future results.
Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statement if those beliefs, opinions or expectations, or other circumstances should change. The Company does not assume any obligation to update any statement contained in this News Release.