EDMONTON, Jan. 9 /CNW Telbec/ - Nexia Biotechnologies Inc. ("Nexia")
(NEX: NXB-H.V) today announced that the Board of Directors has completed its
previously announced assessment of corporate assets. Nexia's management has
been instructed to proceed immediately with a reorganization strategy to
enhance shareholder value. The conceptual transaction structure will protect
the value of the PharmAthene and BioSteel assets, and at the same time allow
shareholders to participate in the oil and gas industry.
David Tonken, President of Nexia, commented, "We have determined that it
is in Nexia's best interests to reorganize the company while demand for public
vehicles containing Nexia's attributes remains strong. Our management has
particular expertise in designing and executing such transactions, including
the successful conversion of Synsorb Biotech Inc. into what is now Iteration
Energy Ltd. (TSX: ITX). Recent transactions such as Chamaelo Exploration Inc.
(TSX: CXN), Flagship Energy Inc. (TSX: FG.A), Capitol Energy Resources Ltd.
(TSX: CPX) and Kereco Energy Ltd. (TSX: KCO) indicate continued strong
interest and value in using undervalued public companies as a foundation for
growing profitable businesses. We note that Canadian Natural Resources Limited
(TSX: CNQ) was an underperforming public entity until a new management team
led it to great success. We will likely reorganize Nexia within the context of
a Plan of Arrangement. This would ultimately result in Nexia shareholders
holding a pro-rata interest in two corporate entities. The first, an undiluted
interest in a wholly owned subsidiary, which would hold the biotech assets,
and the second, an interest in Nexia, which would be made available to a new
oil and gas management team seeking to use a public vehicle to raise money and
acquire additional assets. Shareholders will be fully informed with our
progress as this effort develops."
ABOUT NEXIA
For more information, please visit Nexia's website at
www.nexiabiotech.com . Nexia's complete continuing disclosure documents can be
accessed through Company's securities filings at www.sedar.com .
FORWARD-LOOKING STATEMENT AND OTHER IMPORTANT INFORMATION
Except for the historical information presented herein, matters discussed
herein may constitute forward-looking statements that are subject to certain
risks and uncertainties that could cause actual results to differ materially
from any future results, performance or achievements expressed or implied by
such statements. Statements that are not historical facts, including
statements preceded by, followed by, or that include the words "believes";
"anticipates"; "intends"; "plans"; "expects"; "estimates"; or similar
statements are forward-looking statements. Such statements reflect
management's current views and are based on certain assumptions. Actual
results could differ materially from those currently anticipated as a result
of a number of factors. Nexia specifically disclaims any obligation to update
these forward-looking statements. Nexia assumes no responsibility with respect
to any information contained herein relating to any entity other than itself.
Website addresses referred to herein are provided for convenience purposes
only and information contained therein is not incorporated herein by
reference, nor does Nexia assume any responsibility in connection therewith.
For more information, please visit www.sedar.com . BioSteel(R) is a registered
trademark of Nexia Biotechnologies Inc. in Canada.
