IntelGenx Announces Shareholder Approval of atai Investment

Rhea-AI Summary

IntelGenx Technologies has announced that its shareholders overwhelmingly approved an investment from ATAI Life Sciences AG during a virtual annual meeting. 96.6% of votes supported the investment, which will see atai acquiring a 25% stake in IntelGenx. Additionally, shareholders approved an increase in the company’s authorized common stock from 200 million to 450 million shares. The completion of this investment is expected around May 14, 2021, as conditions for closure are substantially met.

Positive

• Shareholder approval of atai's 25% investment with 96.6% voting in favor.
• Increase in authorized shares from 200 million to 450 million supports future capital raising.

Negative

• None.

SAINT LAURENT, Quebec, May 11, 2021 (GLOBE NEWSWIRE) -- IntelGenx Technologies Corp. (TSX-V:IGX) (OTCQB:IGXT) (“IntelGenx”), a leader in pharmaceutical films, today announced that a significant majority of its shareholders have approved the resolution approving the previously announced investment in IntelGenx by ATAI Life Sciences AG (“atai”), pursuant to which atai will initially acquire an approximate 25% interest in IntelGenx.

The resolution was approved by 96.6% of the votes cast by shareholders present or represented by proxy at the virtual annual meeting of shareholders held earlier today. At the meeting, shareholders also approved a resolution to amend IntelGenx’s Certificate of Incorporation to increase the total number of shares of common stock that IntelGenx is authorized to issue from 200,000,000 shares to 450,000,000 shares.

With substantially all conditions to the closing of the atai investment now being satisfied, it is expected that the investment will be completed on or about May 14, 2021.

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.

About atai

atai is a clinical-stage biopharmaceutical company founded in 2018 in response to the significant unmet need and lack of innovation in the mental health treatment landscape. atai is dedicated to acquiring, incubating and efficiently developing innovative therapeutics to treat depression, anxiety, addiction, and other mental health disorders. atai's business model combines funding, technology, scientific and regulatory expertise with a focus on psychedelic compounds and other drugs with differentiated safety profiles and therapeutic potential. atai operates a decentralized model to enable scalable drug or technological development across its companies, seeking to effectively treat and ultimately heal mental health disorders. atai's vision is to bridge the gap between what the mental healthcare system currently provides and what patients need. atai is headquartered in Berlin, with offices in New York, and London. For more information, please visit www.atai.life.

Forward-Looking Statements

This document may contain forward-looking information which involves 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 U.S. Securities Act. Forward-looking information or forward-looking statements by their nature are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation at the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this document contains forward-looking statements and information regarding the completion and anticipated timing of completion of the atai investment in IntelGenx. Because these forward-looking statements are subject to a number of risks and uncertainties, the Corporation’s actual results, objectives and plans could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include failure to satisfy certain conditions to closing under the Securities Purchase Agreement. The foregoing list is not exhaustive of the factors that may affect the forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are discussed under the heading “Risk Factors” in the Corporation’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. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made, and the Corporation assumes no obligation to update any such forward-looking statements except as required by law. Moreover, all forward-looking information contained herein is subject to certain assumptions. Investors are cautioned against attributing undue certainty to forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

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 policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities.

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 was the outcome of IntelGenx's shareholder meeting on May 11, 2021?

The majority of IntelGenx's shareholders approved the investment from ATAI Life Sciences AG, with 96.6% voting in favor.

What percentage of shares did ATAI Life Sciences AG acquire in IntelGenx?

ATAI Life Sciences AG will acquire an approximate 25% interest in IntelGenx.

When is the investment from ATAI Life Sciences AG expected to be completed?

The investment is expected to be completed around May 14, 2021.

How many shares can IntelGenx now issue following the shareholder approval?

IntelGenx is now authorized to issue up to 450 million shares of common stock.

What implications does the investment from ATAI have for IntelGenx?

The investment provides IntelGenx with additional capital and strategic support in drug development.