Forbes Medi-Tech enters into Amended Agreement with MHT, LLC
VANCOUVER, BC – Forbes Medi-Tech Inc. (OTCBB:FMTI) (“Forbes” or “Company”) today announced
that MHT, LLC (“MHT”) has exercised its “right to match” in respect of the offer of Pharmachem Laboratories,
Inc. to acquire substantially all of the assets of the Company (the “Pharmachem Offer”), as announced in the
Company’s news release of July 29, 2010. In connection with the exercise by MHT of its right to match the
Pharmachem Offer, the Company has entered into an amended agreement with MHT (the “MHT Amended
Agreement”) pursuant to which the purchase price payable by MHT for the purchased assets has been increased
from approximately US$1.4 million to US$1.76 million, in each case subject to inventory adjustments.
At a meeting held on Thursday, August 5, 2010, the Company’s board of directors (the “Board”) agreed to
accept the amended offer of MHT under the terms of the Agreement with MHT. Except for the increase in the
purchase price, the MHT Amended Agreement has substantially the same terms as the MHT Original
Agreement, including with respect to the right of Forbes to consider and accept a superior proposal and, the right
in favour of MHT to match any superior proposal. The expense reimbursement fee payable by Forbes to MHT if
the asset sale is not completed as a result of the superior proposal was increased in the MHT Amended
Agreement to $200,000 on account of MHT’s additional expenses due to the offer process.
Following the completion of the sale of all or substantially all of the assets of the Company (the “Asset Sale”),
Forbes intends on settling all of its contractual obligations, appointing a liquidator (Abakhan & Associates Inc.) to
finalize and wind-up its affairs, and distributing the resulting net proceeds to its shareholders (the
“Liquidation”).The Company expects that the net proceeds of the Liquidation to be in the range of Cdn $0.14 to
Cdn $0.19 per share.
The Board confirms that it continues to