IntelGenx Announces Intention to Amend Convertible Unsecured Promissory Notes

Rhea-AI Summary

IntelGenx Technologies Corp. (TSX-V:IGX) (OTCQB:IGXT) has proposed amendments to its 6.0% convertible unsecured promissory notes, originally issued on May 8, 2018. The key changes include extending the maturity date to October 31, 2024, adjusting the conversion ratio to 11,363 shares per U.S.$5,000, effectively lowering the conversion price from U.S.$0.80 to U.S.$0.44, and reducing the trigger price for conversion to U.S.$0.88. An aggregate principal amount of U.S.$1.6 million is currently outstanding. The proposed amendments are pending approval from the TSX Venture Exchange and the majority of note holders.

Positive

• Extension of the maturity date to October 31, 2024 provides more time for financial maneuvering.
• Reduction in conversion price from U.S.$0.80 to U.S.$0.44 may attract more investors to convert.

Negative

• Dependence on approval from the TSX Venture Exchange and majority note holders introduces uncertainty.
• Reduction in trigger price could indicate lower market confidence or performance.

SAINT LAURENT, Quebec, April 09, 2021 (GLOBE NEWSWIRE) -- IntelGenx Technologies Corp. (TSX-V:IGX) (OTCQB:IGXT) (“IntelGenx”), a leader in pharmaceutical films, today announced that it is proposing to amend the terms of its 6.0% convertible unsecured promissory notes due June 1, 2021, originally issued by private placement on May 8, 2018 (the “Notes”), to (i) extend the maturity date to October 31, 2024, (ii) change the conversion ratio for conversions at the option of the holders of the Notes from 6,250 fully paid and non-assessable shares of common stock for each U.S.$5,000 aggregate principal amount of the Notes then outstanding to 11,363 fully paid and non-assessable shares of common stock for each U.S.$5,000 aggregate principal amount of the Notes then outstanding, effectively representing a reduction of the conversion price from U.S.$0.80 to U.S.$0.44, and (iii) reduce the trigger price for a conversion at the option of IntelGenx from U.S.$1.40 or greater for 20 consecutive trading days to U.S.$0.88 or greater for 20 consecutive trading days. The proposed amendments are subject to approval of the TSX Venture Exchange and holders holding a majority of the aggregate outstanding principal amount of the Notes.

An aggregate principal amount of U.S.$1,600,000 of Notes is outstanding as of the date hereof.

About IntelGenx

IntelGenx is a leading drug delivery company focused on the development and manufacturing of pharmaceutical films.

IntelGenx’s superior film technologies, including VersaFilm^®, DisinteQ™, VetaFilm™ and transdermal VevaDerm™, allow for next generation pharmaceutical products that address unmet medical needs. IntelGenx’s innovative product pipeline offers significant benefits to patients and physicians for many therapeutic conditions.

IntelGenx's highly skilled team provides comprehensive pharmaceuticals services to pharmaceutical partners, including R&D, analytical method development, clinical monitoring, IP and regulatory services. IntelGenx's state-of-the-art manufacturing facility offers full service by providing lab-scale to pilot- and commercial-scale production. For more information, visit www.intelgenx.com.

Forward-Looking Statements

This document may contain forward-looking information about IntelGenx's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about IntelGenx's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. All forward looking statements are expressly qualified in their entirety by this cautionary statement. Because these forward-looking statements are subject to a number of risks and uncertainties, IntelGenx's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in IntelGenx's annual report on Form 10-K, filed with the United States Securities and Exchange Commission and available at www.sec.gov, and also filed with Canadian securities regulatory authorities at www.sedar.com. IntelGenx assumes no obligation to update any such forward-looking statements.

Moreover, all forward-looking information contained herein, including statements in respect of the proposed amendments to the Notes, is subject to certain assumptions, which include obtaining the required approvals from the TSX Venture Exchange and the holders of the Notes. There can be no assurance that such approvals will be obtained.

Each of the TSX Venture Exchange and OTCQB has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Source: IntelGenx Technologies Corp.

For IntelGenx:

Stephen Kilmer
Investor Relations
(514) 331-7440 ext 232
stephen@intelgenx.com

Or

Andre Godin, CPA, CA
President and CFO
IntelGenx Corp.
(514) 331-7440 ext 203
andre@intelgenx.com

FAQ

What amendments are proposed for IntelGenx's convertible promissory notes?

IntelGenx is proposing to extend the maturity to October 31, 2024, change the conversion ratio to 11,363 shares for U.S.$5,000, and reduce the trigger price for conversion.

What is the current outstanding amount of IntelGenx's convertible notes?

The current outstanding amount of IntelGenx's convertible promissory notes is U.S.$1,600,000.

Why is IntelGenx changing the terms of its promissory notes?

The changes are aimed at improving conversion attractiveness and providing the company with more financial flexibility.

What is the significance of the reduction in conversion price for IntelGenx?

The reduction in conversion price may incentivize current note holders to convert their notes to equity, which could enhance liquidity.

When is the maturity date for IntelGenx's amended notes?

The amended maturity date for the convertible notes is proposed to be October 31, 2024.