<<
- Quest disengages completely from China -
>>
Trading Symbol: QPT: TSX Venture Exchange
EDMONTON, Aug. 8 /CNW/ - Quest PharmaTech Inc. ("Quest" or the "Company")
announces that it has signed an agreement with Shanghai Gaojing Capital
Management Co. Ltd., to sell its manufacturing plant in China (Shanghai Hua
Gao Pellet Core Pharmaceutical Ltd. or SHGP) for gross proceeds of
1,250,000 RMB (about $175,000). As part of this transaction, the Gaojing
Government will cancel $725,000 U.S. of lease obligations owed by Quest. The
sale of SHGP completes the Company's strategic decision to disengage
completely from China.
Continuing the Company's effort to sell its non-core assets, Quest also
announces the sale of its AntiCort rights back to Samaritan Pharmaceuticals,
Inc. ("Samaritan") for gross proceeds of $50,000 U.S. and 50,000 common shares
of Samaritan. The sale is part of an arrangement whereby Quest has agreed to
discontinue its statement of claim that was brought against Samaritan in
March, 2006.
Quest previously reported, in its Q1, 2007 financial statements, the
sale, effective June 9, 2006, of the Company's interests in Accu-MAb to Delta
Biotech Inc. for gross proceeds of $200,000. The Company continues to search
for a buyer for the Bionex line of proprietary disinfectants.
"The sale of these non-core assets provides Quest with much needed
working capital to continue its development work and also provide the Company
with financial breathing room as it continues to seek further financing for
its core programs" commented Mr. Pierre Vermette, Chief Financial Officer for
the Company. The Company continues to receive non-dilutive financing from two
government agencies.
The management is also pleased with the progress that has been made in
advancing the cosmetic applications of the Company's SonoLight Technology
closer to the marketplace with the completion of the Phase I clinical trials
for cosmetic hair removal. "I remain optimistic that the Company's future
prospects will improve as we achieve several value-driving milestones",
commented Dr. Madiyalakan, Executive Chairman. As part of this strategy, Quest
intends to utilize all available resources to take SL017 to market as soon as
possible.
In other news, the Company is pleased to announce that it has secured its
long term laboratory space requirements by agreeing to a five year lease with
Edmonton Economic Development Corporation.
About Quest PharmaTech Inc.
The Corporation is a publicly traded (TSX Venture Exchange: QPT),
Alberta-based pharmaceutical company committed to the development and
commercialization of new pharmaceutical products. It is developing a series of
products for the treatment of cancer and dermatological conditions based on
its unique photodynamic and sonodynamic therapy platform.
Except for historical information, this press release may contain
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting.
"TSX Venture Exchange has neither approved nor disapproved of the
information contained herein."
%SEDAR: 00008400E
