Chromos shareholders approve acquisition of Targeted Molecules Corporation and financing terms
Chromos Molecular Systems Inc. announced shareholder approval of its acquisition of Targeted Molecules Corporation (TMC), provisions for recapitalization of Chromos, and revisions to its incentive stock option plan.
On October 26, 2005 Chromos announced that it had signed a definitive merger agreement to acquire TMC and secured commitments from various investors to participate in a private placement financing. Closing of the transactions is contingent upon certain conditions including final approval by the TSX and the shareholders of TMC. Chromos shareholders approved the transactions as outlined in the Management Information Circular with over 99.9% of the votes cast in favor of the transactions. The transactions are expected to close in early December.
Following the completion of the transactions, Chromos will focus on advancing its lead humanized monoclonal antibody designed to treat inflammation. In preclinical studies, this therapeutic approach, targeting the VLA-2 receptor, was shown to reduce inflammation in animal models of multiple sclerosis (MS), inflammatory bowel disease and rheumatoid arthritis.
Chromos intends to initially concentrate on the treatment of acute episodes of relapse in relapse-remitting MS patients. Chromos expects to complete preclinical safety and toxicology studies by 2H-2006 and anticipates filing an Investigational New Drug application in Q4-2006.
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