Ambrilia Biopharma Inc. will seek court protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) in Canada. Application under the CCAA will be heard by the Quebec Superior Court on July 31, 2009. As a result of current economic circumstances, Ambrilia’s Board of Directors authorized Ambrilia to take this action as the best alternative for the interests of the company, its employees, partners, creditors and other stakeholders. Ambrilia will seek protection under the CCAA as its current cash on hand would not allow it to meet its current obligations in the normal course of business. Ambrilia took this decision after thorough consultation with its advisors and extensive consideration of all other alternatives. Ambrilia intends to avail itself of the provisions of the CCAA to prepare and present a plan of arrangement to its creditors. No restructuring plan has yet been determined by Ambrilia. The management intends to provide regular updates with respect to its restructuring plan.
