BURNABY, BC, April 3 /CNW/ - Chromos Molecular Systems Inc. ("Chromos") (TSX:CHR) announced today that the holders of the convertible, secured bridge loan have demanded repayment of the principal and interest, totaling approximately $2,242,000, by April 4, 2007. Chromos does not currently have sufficient funds to satisfy this demand.
The Company is attempting to arrange financing to satisfy this demand for repayment and exploring other strategic alternatives. There can be no assurance that additional financing will be available at all or on acceptable terms to permit Chromos' current operations to continue. If Chromos is unsuccessful in raising sufficient financing it will be required to scale back or terminate certain or all of its operations.
Chromos is a biopharmaceutical company with two drug development programs focused on inflammatory diseases and thrombotic disorders. The Company's lead product, CHR-1103, is a humanized monoclonal antibody being developed as an
acute treatment for relapses associated with multiple sclerosis (MS). Chromos generates revenue from its proprietary ACE System technology to engineer production quality cell lines to manufacture biopharmaceutical products
including monoclonal antibodies. For more information, please visit our website at www.chromos.com.
Risks and Uncertainties
Certain of the statements contained in this press release are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Chromos (the "Company"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
To the extent possible, management implements strategies to reduce or mitigate the risks and uncertainties associated with the Company's operations. Operating risks include (i) the continued availability of capital to finance the Company's activities; (ii) the Company's limited cash position, (iii) the ability to successfully obtain proof of the effectiveness of the Company's technology (iv) the ability to complete and maintain corporate alliances relating to the development and commercialization of the Company's technology; (v) the ability to obtain and enforce patent and other intellectual property
protection for the Company's technology; (vi) market acceptance of the Company's technology; (vii) the competitive environment and impact of technological change; (viii) the Company's ability to attract and retain employees to carry out its business plans; (ix) the timely development and commercialization of any technology or products that are contingent on the
completion and maintenance of corporate alliances with third parties; (*) the demand for repayment of the outstanding Notes by the Noteholders and (xi) regulatory approval of the conversion of the outstanding Notes. Further details on Chromos' operating risks can be found in the Company's Quarterly and Annual Reports to Shareholders.
For further information: Jeff Charpentier, CA, Vice President Finance and CFO, (604) 415-7132, email: email@example.com