Vancouver, BC, January 17, 2005--Chromos Molecular Systems Inc. ("Chromos"; TSX: CHR) announced today that it has completed the private placement of 2,215,085 units at $0.48 per share for total gross proceeds of $1,063,241. Each unit consists of one common share and one-half on one common share purchase warrant.
Each whole warrant will entitle the holder to purchase one additional Common Share of the Company at a price of $0.60 for a period of 24 months from the closing date of the private placement. The proceeds will be used to fund the on-going development of the Company's cellular engineering and cell therapy programs and for general working capital purposes.
The Company expects this closing to be followed by a subsequent closing in January 2005 for the private placement of additional units on the same terms.
The Company paid commissions and finders fees aggregating $69,526 and issued an aggregate of 142,247 share purchase warrants in connection with the initial closing.
About Chromos
Chromos Molecular Systems Inc. is a public cellular engineering and therapeutics company creating value through engineering production quality cell lines for the manufacture of biopharmaceuticals, and developing innovative therapies for infectious diseases, cancer and genetic disorders. Chromos is achieving these objectives with its ACE System (Artificial Chromosome Expression) and REM (Rapid Expansion Method) technologies. In the near term, the Company will focus on continued commercialization of the ACE System for engineering cell lines and the development of an immune-based cell therapy for chronic hepatitis B, based on its REM technology.
Risks and Uncertainties
Certain of the statements contained in this press release are forward- looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Chromos (the "Company"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
To the extent possible, management implements strategies to reduce or mitigate the risks and uncertainties associated with the Company's operations. Operating risks include (i) the ability to successfully obtain proof of the effectiveness of the Company's technology; (ii) the ability to complete and maintain corporate alliances relating to the development and commercialization of the Company's technology; (iii) the ability to obtain and enforce patent and other intellectual property protection for the Company's technology; (iv) market acceptance of the Company's technology; (v) the competitive environment and impact of technological change; (vi) the continued availability of capital to finance the Company's activities; (vii) the Company's ability to attract and retain employees to carry out its business plans and (viii) the timely development and commercialization of any technology or products that are contingent on the completion and maintenance of corporate alliances with third parties. Further details on Chromos' operating risks can be found in the Company's Quarterly and Annual Reports to Shareholders.
For further information
Investor Relations inquiries: Kathryn Hayashi, CA, Vice President, Finance, Tel: (604) 415-7132, Email: khayashi@chromos.com
Media inquiries: Joseph Zendegui, Ph.D., Vice President, Corporate Development, Tel: (604) 415-7128, Email: jzendegui@chromos.com, Website: www.chromos.com