Forbes Medi-Tech Announces Acceptance of Revised Offer from Pharmachem Laboratories, Inc. and
Intention to Reconvene Annual and Special Meeting
VANCOUVER, BC – Forbes Medi-Tech Inc. (OTCBB:FMTI) (“Forbes” or “Company”) today announced
that MHT, LLC (“MHT”) has declined to exercise its right to match the offer of Pharmachem Laboratories Inc.
(“Pharmachem”) to acquire substantially all of the assets of the Company for US$4.0 million (the “Pharmachem
Revised Offer”), as described in the Company’s news release of August 16, 2010. As a result, the Company’s
board of directors (the “Board”), at a meeting held on August 20, 2010, decided, in consultation with its outside
counsel, to withdraw its recommendation that shareholders approve the amended and restated asset purchase
agreement dated August 5, 2010 (the “MHT Amended Asset Purchase Agreement”) between MHT and the
Company and, instead, to recommend that shareholders approve an asset purchase agreement dated August 20,
2010 (the “Pharmachem Asset Purchase Agreement”) between Pharmachem and the Company in respect of the
Pharmachem Revised Offer to acquire substantially all of the assets of the company for US$4.0 million.
Accordingly, the Company has terminated the MHT Amended Asset Purchase Agreement and entered into the
Pharmachem Asset Purchase Agreement. The Company will be required to pay a US$200,000 expense
reimbursement fee to MHT as a consequence of terminating the MHT Amended Asset Purchase Agreement in
order to accept the Pharmachem Revised Offer.
The Company further announced today that it intends to reconvene its annual and special meeting of shareholders
(the “Meeting”) on Tuesday, August 24, 2010 to consider and, if thought advisable, approve the sale of
substantially all of the assets of the Company (the “Asset Sale”) and subsequent liquidation of the Company (the
“Liquidation”). The Meeting was adjourned on August 16, 2010 until such time as the Company has publicly
disclosed sufficient information regarding the final terms of