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Welichem to Effect Share Consolidation and Raise $3.75 Million in Non-Brokered Private Placement

  //health-fitness.news-articles.net/content/2009/ .. 5-million-in-non-brokered-private-placement.html
  Published in Health and Fitness on Wednesday, July 8th 2009 at 18:46 GMT, Last Modified on 2009-07-08 18:46:54 by Market Wire

 BURNABY, BC, July 8 /CNW/ - Welichem Biotech Inc. ("Welichem" or the "Company") (TSX-V: WBI) announces that the Company will take steps to effect a consolidation (the "Consolidation") of all of its issued and outstanding common shares on the basis of one (1) post-consolidation common share for every ten (10) pre-consolidation common shares. The Company previously received shareholders' approval for the Consolidation at the special general meeting held on April 6, 2009. The effective date of the Consolidation will be announced after the Company receives approval from the TSX Venture Exchange. The name of the Company will not be changed in conjunction with the Consolidation. The Company also announces that it has arranged a non-brokered private placement, to be completed after the effectiveness of the Consolidation, for CDN $3,750,000 through the issuance of 25,000,000 units of its post-Consolidation securities at the price of $0.15 per unit. Each unit will consist of one post-Consolidation common share and one-half of one share purchase warrant. Each whole share purchase warrant is exercisable into one post-Consolidation common share at an exercise price of $0.15 for a period of 24 months from the date of issuance of the share purchase warrant. The Company may pay a finder's fees equal to 10% of the gross proceeds in connection with the private placement. ON BEHALF OF THE BOARD "Tan Xiangdong" Tan Xiangdong, Chairman of the Board The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release. This press release contains forward-looking statements that include our belief as to the effects of the proposed share consolidation and the Company's ability to complete the private placement for $3.75 Million post-Consolidation. Certain risks and uncertainties such as our ability to successfully complete the share consolidation could cause the Company's actual results to differ materially from those in the forward-looking statements. %SEDAR: 00021386E 

For further information: Genhui Chen, Chief Executive Officer, Tel.: (604) 432-1703, Email: [ gchen@welichem.com ]