Vancouver, BC, March 23, 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 1,000,000 common shares (the "Shares") with an institutional investor at a price of CDN$1.06 per Share for gross proceeds of CDN$1,060,000.
There were no agents' fees paid on the transaction. The placement was in addition to the 5,471,698 common shares for CDN$5.8 million placed earlier on March 22, 2006, increasing the gross proceeds of the private placements to CDN$6,860,000.
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.
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 39,397,205 common shares issued and outstanding.
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