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--NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION OVER U.S. NEWSWIRE SERVICES--
VANCOUVER, BC -- Forbes Medi-Tech Inc. (TSX:FMI; NASDAQ:FMTI) ("Forbes" or "Company") announced today that its subsidiary known as Forbes Medi-Tech Operations Inc. ("FMTO") or "3887685 Canada Inc." is undertaking a transaction that, upon closing and subject to certain conditions, will provide Forbes with an opportunity to realize an anticipated minimum of approximately $800,000 in additional funding from its Non-Dilutive Funding Transaction, which was originally announced on March 20, 2008, with the subsequent closing announced on May 12, 2008.
FMTO, which has been renamed "Deans Knight Income Corporation," has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in connection with a proposed public offering. Deans Knight Capital Management Ltd., a private investment manager, will act as the investment advisor to Deans Knight Income Corporation.
The preliminary prospectus contains important information about the securities of Deans Knight Income Corporation and is still subject to completion or amendment. There will not be any sale or any acceptance of an offer to buy the securities of Deans Knight Income Corporation until a receipt for the final prospectus has been issued. Closing of the proposed transaction will be subject to satisfaction of certain conditions, including receipt of all regulatory approvals.
Subject to certain conditions, upon closing of the minimum offering, it is expected that Forbes will have the opportunity to monetize its interest in the subsidiary and, as a result, by approximately May 2009 will receive a minimum of approximately $800,000 in additional funding, as outlined in the terms of the original Non-Dilutive Funding Transaction.
The proposed transaction will not result in any change to the share ownership of Forbes, its listing on the NASDAQ or TSX, the composition of its Board of Directors, management, or in any of its relationships and commitments to shareholders, employees, government and industry partners, customers, and suppliers.
The securities offered will not be and have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction.
About Forbes Medi-Tech
Forbes Medi-Tech Inc. (TSX:FMI; NASDAQ:FMTI) is a life sciences company focused on evidence-based nutritional solutions. A leader in nutraceutical technology, Forbes is a provider of value-added products and cholesterol-lowering ingredients for use in functional foods and dietary supplements. Forbes successfully developed and commercialized its Reducol(tm) plant sterol blend, which has undergone clinical trials in various matrices and has been shown to lower "LDL" cholesterol levels safely and naturally. Building upon established partnerships with leading retailers and manufacturers across the globe, Forbes helps its customers to develop private label and branded products. For more information about Forbes Medi-Tech, please visit www.forbesmedi.com.
This News Release contains forward-looking statements and information regarding a proposed public offering and the anticipated receipt by Forbes of an additional $800,000 as outlined in the terms of the original Non-Dilutive Funding Transaction, which statements can be identified by the use of forward-looking terminology such as "anticipated", "proposed", "expected", "opportunity", "subject to", "will not be", "will be", "until" and similar expressions or variations thereon. The Company's actual results could differ materially from those anticipated in these forward-looking statements and information as a result of numerous risks and uncertainties, including (i) uncertainty whether a final prospectus will be filed or a receipt issued, whether the proposed offering will be carried out as contemplated, whether the proposed transaction will close at all, or whether Forbes will be able to monetize its interest in the subsidiary or receive all or any part of the anticipated $800,000 additional funding; (ii) the need for regulatory approvals and performance by third parties, which are not assured; (iii) the Company's need for further funding, which is not assured; (iv) changes in business strategy or plans; and (v) other risks and uncertainties, as contained in news releases and filings with Securities Regulatory Authorities in Canada and the U.S. at www.sedar.com and at www.sec.gov; any of which could cause actual results to vary materially from current results or the Company's anticipated future results. Forward-looking statements and information are based on the assumptions, beliefs, opinions and expectations of the Company's management at the time they are made, and, except as required under applicable law, the Company does not assume any obligation to update any statement should those assumptions, beliefs, opinions or expectations, or other circumstances change.
Reducol(tm) is a trademark of Forbes Medi-Tech Inc.
Contact:
Jodi Regts
Director, Investor Relations and Communications
Phone: (604) 681-8976
E-mail: jregts@forbesmedi.com
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