IntelGenx Initiates Restructuring Proceedings Under the CCAA to Implement a Review of its Strategic Alternatives
IntelGenx Technologies announced it is seeking protection from creditors under the CCAA, allowing time to review strategic alternatives. The decision was made after consulting legal and financial advisors. They aim to generate interest in their business or assets, or consider recapitalization. The initial court order will likely include a stay on creditor claims and authorize interim DIP financing to continue operations during restructuring. Trading on the TSX has been halted pending a review of IntelGenx's suitability for listing. Changes in the Board of Directors include the resignation of Clemens Mayr, Sahil Kirpekar, and Ryan Barrett.
- Board of Directors has authorized a strategic review process to maximize returns.
- Court protection under CCAA provides IntelGenx with a stay on creditor claims, offering breathing room for strategic review.
- Interim DIP financing authorized to ensure operational continuity during restructuring.
- Trading on the TSX halted, pending a review of listing suitability.
- Resignation of three board members could signal internal instability.
- Seeking creditor protection under CCAA indicates severe financial distress.
MONTREAL, May 17, 2024 (GLOBE NEWSWIRE) -- IntelGenx Technologies Corp. (the “Company” or “IntelGenx”) (OCTQB: IGXT; TSX: IGX), a leading drug delivery company focused on the development and manufacturing of pharmaceutical films, announced today that its Board of Directors has authorized the Company and its subsidiary to bring an application in the Québec Superior Court (Commercial Division) (the “Court”) to seek protection from creditors under the Companies’ Creditors Arrangement Act (“CCAA”) to give the Company sufficient time and breathing room to implement a review of its strategic alternatives.
After a careful review of all available alternatives and following thorough consultation with its legal and financial advisors, the Company’s Board of Directors determined that it was in the best interest of IntelGenx and its stakeholders to file an application for creditor protection under the CCAA. The protection afforded by the CCAA is intended to provide the Company with the time and breathing room necessary to implement a strategic review process under the oversight of the Board of Directors and with the advice of IntelGenx’s professional advisors. In this regard, IntelGenx anticipates that it will seek Court approval to initiate a formal sale and investment solicitation process intended to generate interest in either the business or the assets of IntelGenx, or in a recapitalization of IntelGenx, with the goal of implementing one or more transaction(s). The implementation of one or more transaction(s) may be in addition to, or as an alternative, to a CCAA plan of compromise or arrangement, to maximize return in respect of IntelGenx’s business and assets.
The initial Court order sought is expected to include a stay of creditor claims and exercise of contractual rights with a view to provide the Company some breathing room to implement its strategic review process. It is also expected to authorize interim debtor-in-possession (DIP) financing in order to allow the Company to continue its operations during the restructuring process and implement the necessary restructuring measures.
Trading in the common shares of the Company on the Toronto Stock Exchange (the “TSX”) has been halted and it is anticipated that the trading thereof will continue to be halted until a review is undertaken by the TSX regarding the suitability of the Company for listing on the TSX.
Furthermore, the Company has announced changes to its board of directors as Clemens Mayr, Sahil Kirpekar and Ryan Barrett have resigned from the Board of Directors of the Company, effective immediately.
The Company will provide an update on this matter once more information is available.
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 pharmaceutical 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 https://www.intelgenx.com/ and connect with us on X and LinkedIn.
IntelGenx Forward-Looking Statements
This press release contains forward-looking information under applicable securities law. All information that addresses activities or developments that we expect to occur in the future is forward-looking information. Forward-looking statements use such word as “will”, “may”, “potential”, “believe”, “expect”, “continue”, “anticipate” and other similar terminology. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to: (i) the outcome of the CCAA proceedings, (ii) the obtaining of the approval of the Court to initiate a formal sale and investment solicitation process to secure additional financing, sell assets, or a combination thereof, (iii) the ability of the Company to secure additional financing or otherwise enter into one or more transaction(s), and (iv) halt trading of the common shares and review of the TSX regarding the suitability of the Company for listing on the TSX and any outcome of such review. However, they should not be regarded as a representation that any of the plans will be achieved. Actual results may differ materially from those set forth in this press release due to risks affecting the Company, including the outcome of the CCAA proceedings and the capacity of the Company to enter into one or more transaction(s) that would allow the Company to pursue its activities as a going concern and the continued listing of its common shares on a stock exchange. IntelGenx assumes no responsibility to update forward-looking statements in this press release except as required by law. These forward-looking statements involve known and unknown risks and uncertainties. Investors are cautioned not to rely on these forward-looking statements and are encouraged to read IntelGenx’s continuous disclosure documents, including its current annual information form, as well as its audited annual consolidated financial statements which are available on SEDAR at http://www.sedar.com and on EDGAR at http://www.sec.gov/edgar
Source: IntelGenx Technologies Corp.
stephen@intelgenx.com
FAQ
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