Vancouver, BC, March 22, 2006--Chemokine Therapeutics Corp. (Toronto Stock Exchange: CTI;), a biotechnology company developing peptide-based therapies to treat cancer, blood disorders, cardiovascular and infectious disease, announced that today it placed 5,471,698 common shares (the "Shares") with a group of primarily institutional investors at a price of CDN$1.06 per Share for gross proceeds of CDN$5.8 million.
The Company placed a four-month trading restriction on the Shares, commencing March 22, 2006, in accordance with Canadian securities laws and regulations. As part of the offering, the Company has agreed to register the Shares for trading in the United States. The Company will file, at its expense, a registration statement with the U.S. Securities and Exchange Commission within 30 days.
For services rendered in this transaction, the Company paid its agent a commission of CDN$344,500 and issued warrants to purchase 350,000 shares of common stock at a price of CDN$1.25, exercisable on or before March 22, 2008.
The net proceeds of the placement will be used to fund the pre-clinical and clinical development of our product candidates and for working capital and general corporate purposes. After giving effect to this transaction, the Company has 38,397,205 common shares issued and outstanding.
"We welcome the participation of existing institutional investors in the private placement and believe the increase in investment reflects their confidence in the Company's technology and the management team" said Dr. Hassan Salari, President and Chief Executive Officer.
The Company issued the Shares pursuant to the nonpublic offering exemption of Section 4(2) of the United States Securities Act of 1933, as amended (the "1933 Act"). The Company privately negotiated the placement of the Shares with sophisticated investors, and the Company made no public solicitation or distribution in connection with the placement of the Shares. The Shares have not been registered under the 1933 Act or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states. This press release is not an offer of securities in the United States.
About Chemokine Therapeutics Corp. (TSX: CTI, OTCBB: CHKT)
Chemokine Therapeutics is a product-focused biotechnology company developing drugs that harness the therapeutic potential of stem cells through chemokine pathways. Chemokines are a class of proteins which signal biological responses from stem cells that play a critical role in the growth, differentiation and maturation of cells necessary for fighting infection, as well as tissue repair and regeneration. Stem cells are the master primitive cells that give rise to all of the cells and organs in the body. Chemokines are one of the major mediators of stem cell activity including stem cell growth, differentiation and maturation. Chemokine Therapeutics is a leader in research in this field. The Company has five product candidates with two lead product candidates in clinical trials; CTCE-0214, for enhancing the immune system, and CTCE-9908, to prevent the spread of cancer and its continued growth.
For further information
Chemokine Therapeutics Corp.: David Karp, Chief Financial Officer, Phone: (604) 822-3347, E-mail: dkarp@chemokine.net
Frederica Bell, Director of Investor Relations, Phone: (604) 827-3131, E-mail: fbell@chemokine.net, Internet: www.chemokine.net