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Technology Stocks : SYNSORB (T.SYB)(SYBBF) CURE FOR CANCER? -- Ignore unavailable to you. Want to Upgrade?

To: Golf Pro6 who wrote (61)	8/4/1999 8:40:00 AM
From: Tupulak	Read Replies (1) \| Respond to of 164

AUG. 4/99 SYNSORB Biotech Inc. Announces Subsidiary, Oncolytics Biotech Inc., Concludes Private Placement of Special Warrants CALGARY, ALBERTA--SYNSORB Biotech Inc. ("SYNSORB") (TSE: SYB; Nasdaq: SYBB) today announced that its wholly owned subsidiary, Oncolytics Biotech Inc. ("Oncolytics"), has concluded a private placement raising gross proceeds of $900,000, with the intent to pursue an Initial Public Offering (IPO) shortly. Canaccord Capital Corporation acted as agent in connection with the offering. Under the private placement, 1.5 million special warrants were sold at a price of $0.60 per special warrant. Each special warrant is exercisable for no further consideration into one Oncolytics common share and one share purchase warrant. Each share purchase warrant is exercisable to purchase one Oncolytics common share at $.75 per share, within two years from an IPO. The number of shares to be issued upon exercise of the special warrants and the share purchase warrants (and the exercise price thereof) are subject to an IPO being concluded within 180 days at a price equal to or greater than $.75 per common share. Oncolytics has agreed to use its best efforts to complete an IPO and list its shares for trading on The Alberta Stock Exchange within 180 days, failing which the holders of the special warrants will receive 10 percent additional shares and share purchase warrants on exercise of their special warrants. Oncolytics has assumed the primary obligation from SYNSORB for royalties and future milestone payments that were negotiated at the time of SYNSORB's acquisition of Oncolytics. Prior to this transaction, SYNSORB owned 100 percent of Oncolytics' 6.75 million common shares outstanding, and still retains a majority ownership position in Oncolytics. "SYNSORB is extremely pleased that we are able to finance this project from external sources," noted Dr. David Cox, President and CEO of SYNSORB. "This will ensure that the reovirus technology will be developed as quickly as possible, yet not divert any of SYNSORB's resources away from its prime goal, the completion of SYNSORB Pk(R) development." Oncolytics was formed to explore the use of the reovirus as a potential cancer therapeutic. Oncolytics researchers discovered that the benign human reovirus infects and kills cancer cells with an activated Ras pathway. Ras is an important component of a pathway controlling normal growth and differentiation of a cell, and when mutated, may account for 30-40 percent of all human tumors. Indeed, mutations in Ras are found in many types of human malignancies, but are highly represented in pancreatic (90 percent), sporadic colorectal (50 percent), lung carcinomas (30 percent), myeloid leukemia (30 percent) and thyroid tumors (50 percent). Researchers believe that targeting this mutation could have broad potential in the treatment of many cancers. Oncolytics researchers demonstrated that reovirus was selectively able to kill cancer cells with this particular mutation and successfully demonstrated that the virus could kill human cancer cells derived from breast, prostate, pancreatic and brain tumors in vitro. SYNSORB is dedicated to accelerated drug development and currently has two products in late stage clinical trials, SYNSORB Pk(R) for the treatment of verotoxigenic E. coli (VTEC) infections (including O157:H7), and SYNSORB Cd(R) designed to treat recurrent antibiotic-associated diarrhea (CDAD). SYNSORB has novel antibiotics in pre-clinical development and inflammation and anti-virals targeted in the Company's research and development program. This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements. These factors include results of current or pending clinical trials, actions by the FDA/HPB and those factors detailed in the Company's registration statement on Form 20 F filed with the Securities and Exchange Commission. -30- FOR FURTHER INFORMATION PLEASE CONTACT: The Equicom Group Jason Hogan Investor Relations (416) 815-0700 ex 222 (416) 815-0080 (FAX) United States: 800-385-5451 or Oncolytics Biotech Inc. Dr. Brad Thompson President & CEO (403) 283-5900 (403) 283-5907 (FAX) or SYNSORB Biotech Inc. Mr. Doug Froom For product licensing inquiries (403) 283-5900 (403) 283-5907 (FAX) htp://www.synsorb.com