Forbes Medi-Tech Provides Further Update on Revised Offer from Pharmachem Laboratories, Inc.
and Announces Intention to Adjourn Portion of Annual and Special Meeting
VANCOUVER, BC – Forbes Medi-Tech Inc. (OTCBB:FMTI) (“Forbes” or “Company”) today announced
that Pharmachem Laboratories, Inc. (“Pharmachem”) has further increased its revised offer (the “Pharmachem
Revised Offer”) to acquire substantially all of the assets of the Company as described in our press release dated
August 9, 2010. Pharmachem has increased the purchase price under the Pharmachem Revised Offer from
US$2.9 million to US$4.0 million.
At a meeting held on August 15, 2010, the Company’s board of directors (the “Board”) confirmed that the
Pharmachem Revised Offer, as increased, continues to be on more favorable terms to Forbes’ shareholders than
the transaction contemplated by the amended and restated asset purchase agreement dated August 5, 2010 (the
“MHT Amended Asset Purchase Agreement”) between MHT, LLC (“MHT”) and the Company and continues
to qualify as a “Superior Offer” under the MHT Amended Asset Purchase Agreement. As the Pharmachem
Revised Offer continues to constitute a Superior Offer, MHT has the right, but not the obligation, to make an
offer at least as favorable to Forbes’ shareholders as the Pharmachem Revised Offer by no later than Thursday,
August 19, 2010. If MHT does not make another offer, the Board will consider, in consultation with its outside
counsel, whether, in light of the Pharmachem Revised Offer, the Board should withdraw its recommendation of
the MHT Amended Asset Purchase Agreement and Forbes should enter into a definitive agreement with
Pharmachem in connection with the Pharmachem Revised Offer. The MHT Amended Asset Purchase
Agreement remains in effect as of the date of this News Release.
The Company further announced today that it intends to postpone voting on the Asset Sale and subsequent
liquidation (the “Liquidation”) at the annual and special meeting of shareholder