EDMONTON, ALBERTA--(Marketwire - Aug. 5, 2010) - Afexa Life Sciences Inc. ("Afexa" or the "Company") (TSX:FXA) announced today that the Ontario Superior Court of Justice has dismissed a proposed Ontario class action lawsuit in conjunction with its approval of the settlement of all related claims. As part of the settlement and in conjunction with the Ontario Court Order, the Alberta Court of Queen's Bench has dismissed a parallel proposed Alberta class action lawsuit. As announced on September 16, 2009, the Company reached an agreement in principle to settle the proposed lawsuits, which were commenced in Ontario and Alberta in August of 2007 against the Company, certain of its officers, former directors and its former auditors.
The settlement agreement provides for the settlement, release and dismissal of all claims asserted against the Company, its former auditors and the individual proposed defendants and does not in any way contain or constitute any admission of liability by Afexa or its officers, directors or employees. The Company's portion of the settlement amounts to $6.6 million which will be funded through insurance coverage.
ABOUT AFEXA LIFE SCIENCES INC.
Afexa Life Sciences Inc., founded in 1992, strives to deliver the most trusted health brand on the planet through pioneering evidence-based natural medicines that empower people to achieve their health potential. The Company's patented ChemBioPrint® discovery and standardization technology enables the development of effective and safe medicines from complex natural sources, while ensuring reliable health benefits and batch-to-batch consistency. COLD-FX®, a ChemBioPrint product, is the Company's flagship product and Canada's leading over-the-counter (OTC) cold and flu remedy. It is officially indicated in Canada to help reduce the frequency, severity and duration of cold and flu symptoms by boosting the immune system. COLD-FX products have product licenses (NPN) and are supported by scientific evidence, including randomized, double-blind, placebo-controlled clinical trials.
Advisory Regarding Forward-Looking Statements
This news release contains certain forward-looking statements and information within the meaning of applicable securities laws, which reflect current expectations of the management of Afexa Life Sciences Inc. regarding future events or the Company's future performance, including, without limitation, statements relating to the settlement of the proposed class action lawsuits. The Company believes that the expectations and assumptions reflected in the forward-looking information contained herein are reasonable but no assurance can be given that these expectations and assumptions are correct or that that the results implied by forward-looking statements herein will occur. The Company assumes no duty to update or revise forward looking information, except as may be required pursuant to applicable laws. All forward-looking information is expressly qualified in its entirety by this cautionary statement. The Company claims exemption under U.S. SEC Rule 12g3-2(b).