IntelGenx Obtains Court-Approval of a Sale and Investment Solicitation Process
IntelGenx Technologies Corp. (OTCQB: IGXT; TSX: IGX), a leading drug delivery company, received court approval for a Sale and Investment Solicitation Process (SISP) following an initial order issued under the Companies' Creditors Arrangement Act (CCAA) by the Québec Superior Court.
Ernst & Young Inc. was appointed as the monitor, and interim debtor-in-possession financing was provided by atai Life Sciences AG to continue operations. The court-approved SISP aims to generate interest in IntelGenx's business or assets, or a potential recapitalization. atai Life Sciences AG was also approved as the 'stalking horse' bid, establishing a baseline for other bids.
The SISP will be a two-phase process, with the first phase's non-binding LOI submission deadline on July 15, 2024. Ongoing updates and relevant documents will be available on the Monitor’s website.
- Court approved IntelGenx's Sale and Investment Solicitation Process (SISP).
- Ernst & Young Inc. appointed as the monitor for the process.
- Interim debtor-in-possession financing provided by atai Life Sciences AG.
- atai Life Sciences AG's stalking horse bid establishes a baseline price and structure, ensuring a going-concern solution.
- Qualified interested parties can participate in the SISP.
- SISP aims for a broad range of transaction alternatives including sales, investments, and restructurings.
- SISP's Phase 1 Non-Binding LOI Submission Deadline set for July 15, 2024.
- IntelGenx required protection under the Companies' Creditors Arrangement Act (CCAA).
- The need for restructuring indicates financial or operational distress.
- The company's reliance on interim debtor-in-possession financing suggests liquidity issues.
MONTREAL, May 28, 2024 (GLOBE NEWSWIRE) -- As previously announced on May 17, 2024, 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, was granted protection pursuant to an initial order (as amended, the “Initial Order”) issued under the Companies' Creditors Arrangement Act (“CCAA”) by the Québec Superior Court (Commercial Division) (the “Court”). The Initial Order appointed Ernst & Young Inc. as monitor (the “Monitor”) and authorized interim debtor-in-possession financing (DIP) financing provided by atai Life Sciences AG in order to allow the Company to continue its operations during the restructuring process and implement the necessary restructuring measures.
On May 27, 2024, IntelGenx obtained an order from the Court (the “SISP Approval Order”) approving the implementation of a 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 “SISP”). The SISP Approval Order provides that the SISP will be conducted by the Monitor.
As part of the SISP Approval Order, the Court also approved the agreement of purchase and sale between IntelGenx, as vendor, and atai Life Sciences AG, as purchaser, solely for the purpose of constituting the “stalking horse” bid under the SISP (the “Stalking Horse Bid”). The Stalking Horse Bid establishes a baseline price and deal structure for the solicitation of superior bids from qualified interested parties and provides certainty that a going-concern solution for the business of IntelGenx has already been identified.
All qualified interested parties will be provided with an opportunity to participate in the SISP. The SISP is intended to solicit interest in and opportunities for a broad range of executable transaction alternatives involving the business and assets of IntelGenx, through one or more sales or partial sales of all, substantially all, or certain portions of the business and assets, and/or an investment in, restructuring, recapitalization, refinancing or other form of reorganization of IntelGenx or its business.
The SISP will be conducted as a two-phase process with the Phase 1 Non-Binding LOI Submission Deadline set for 5:00 p.m. (Montréal Time) on July 15, 2024.
Copies of the order approving the SISP and the SISP procedures may be obtained from the Monitor’s website: www.ey.com/ca/intelgenx.
Further news releases will be provided on an ongoing basis throughout the CCAA proceedings as required by law or otherwise as may be determined necessary by the Company or the Court. Documents relating to the restructuring process such as the Initial Order, the Monitor’s reports to the Court as well as other Court orders and documents shall also be published and made accessible on the Monitor’s website: www.ey.com/ca/intelgenx.
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
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Source: IntelGenx Technologies Corp.
FAQ
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