IntelGenx Receives U.S.$6 Million in Additional Loans from atai Life Sciences and Conditional Approval to Graduate to Toronto Stock Exchange

Rhea-AI Summary

IntelGenx Technologies Corp. (TSXV: IGX, OTCQB: IGXT) has announced an amended secured loan agreement with atai Life Sciences, providing $3 million loans maturing on January 5, 2024. The agreement also extends existing loans of $2.5 million to the same maturity date. Additionally, IntelGenx has received conditional approval from the Toronto Stock Exchange to graduate from the TSX Venture Exchange, pending compliance with requirements. This move will enhance visibility among institutional investors, as noted by CEO Dr. Horst G. Zerbe.

Positive

• Secured additional loans of $6 million, extending financial runway.
• Conditional approval received to graduate to the Toronto Stock Exchange, potentially increasing investor visibility.

Negative

• None.

SAINT LAURENT, Quebec, Sept. 15, 2021 (GLOBE NEWSWIRE) -- IntelGenx Technologies Corp. (TSXV: IGX) (OTCQB: IGXT) (the “Company”) announces that its wholly-owned subsidiary, IntelGenx Corp. (“IntelGenx”), has entered into an amended and restated secured loan agreement (the “Loan Agreement”) with atai Life Sciences (“atai”) pursuant to which atai has made two additional term loans available to IntelGenx in the amount of U.S.$3,000,000 each (the “New Loans”), which will mature on January 5, 2024. The New Loans will be made on January 7, 2022 and January 6, 2023, respectively, subject to the satisfaction of customary conditions. The Loan Agreement also extends the maturity date for the current loans, in an aggregate amount of U.S.$2,500,000, to January 5, 2024. The obligations under the New Loans are guaranteed by the Company.

The Company also announces that it has received conditional approval from the Toronto Stock Exchange (the “TSX”) to graduate from the TSX Venture Exchange and list its shares of common stock (the “Common Shares”), its 8% convertible debentures with a maturity date of June 30, 2022, and its share purchase warrants expiring on February 11, 2023, on the TSX. Final approval of the listing is subject to the Company meeting certain requirements of the TSX. The Company will make a further announcement once the TSX has issued a bulletin confirming the date on which trading on the TSX will commence. In connection with the listing on the TSX, the Company will apply to voluntarily delist its Common Shares, debentures and warrants from the TSX Venture Exchange to be effective as of the date the Common Shares, debentures and warrants commence trading on the TSX.

“Graduating to the TSX will be a significant milestone for our Company coming as a result of, among other recent accomplishments, our transformative strategic partnership with atai,” commented Dr. Horst G. Zerbe, CEO of IntelGenx. “The TSX is Canada's premier stock exchange and this should increase the visibility of IntelGenx to a broader and more diverse range of institutional investors, both at home and abroad.”

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 Information and Statements

This document may contain forward-looking information or forward-looking statements within the meaning of applicable United States and Canadian securities laws (collectively, “forward-looking statements”). These statements are statements that are not purely historical and include, but are not limited to, statements about the advancement of the New Loans and the obtaining of the TSX’s final approval to list its Common Shares on the TSX. 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, the factors 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 and www.sedar.com.

Although the Company believes that the expectations and assumptions on which forward-looking statements are based are reasonable, readers of this press release are cautioned not to rely unduly on such forward-looking statements since no assurance can be given that they will prove to be correct. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of events or circumstances occurring after the date of this press release, unless so required by legislation.

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.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer or solicitation of sale would be unlawful.

For more information, please contact:

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 loans has IntelGenx announced?

IntelGenx has announced two additional secured loans of $3 million each from atai Life Sciences, maturing on January 5, 2024.

What is the significance of IntelGenx's graduation to the TSX?

Graduating to the TSX is expected to enhance visibility for IntelGenx, attracting a broader range of institutional investors.

What is the total amount of loans under the amended agreement?

The total loans under the amended agreement amount to $8.5 million, including $2.5 million in current loans.

When will the new loans be made available to IntelGenx?

The new loans will be made available on January 7, 2022, and January 6, 2023, respectively.