WEX to repay $5.1 million convertibles

By Angela McDaniels

Seattle, Dec. 23 - WEX Pharmaceuticals Inc. said it has finalized negotiations with the holders of the $5.1 million unsecured convertible debentures issued in June 2004 by subsidiary Wex Medical Ltd. to three investment funds managed by a major Asian financial institution.

Under the amended terms, the company has agreed with the institution to repay the debentures in a series of installments over the next two years. An initial payment of $1.02 million will be made prior to Dec. 31 and the final payment will be made on Dec. 31, 2007.

In connection with the amendments, the institution has agreed to release the company from any claims arising from allegations that WEX breached representations and warranties contained in the agreements relating to the issue of the debentures, including a claim for early redemption of the debentures.

The remaining terms of the debentures remain unchanged: they carry an annual coupon of 5.5%, payable semi-annually and can be converted into common shares of WEX at a conversion price of C$5.00 per share. WEX may force conversion provided the daily closing price of the common shares equals or exceeds C$7.50 per share for 10 consecutive trading days.

WEX is a pharmaceutical company based in Vancouver, B.C., that develops drug products to treat pain.

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