Mistral Pharma files bankruptcy plan, will issue nAugust, 19, 2008 - 03:55 pmTHE CANADIAN PRESS
MONTREAL- Mistral Pharma Inc. (TSXV:MIP), a Montreal-based drug developer, saysit has filed a proposal under the Bankruptcy and Insolvency Act(Canada) to restructure and get new investment to keep operating.
Mistralsaid Tuesday it had received a fresh cash infusion from a third partyin the company in exchange for the cancellation of all of the company'sshares, options and warrants and the issuing of new shares to theunnamed investor.
The money will bee used to keep the company operating, Mistral said in a release.
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Iftwo thirds of the creditors approve the restructuring at a meetingSept. 4, the Superior Court of Quebec will be asked to ratify theproposal and authorize the arrangement, which will cancel the existingshares.
Mistral Pharma has specialized in the development of controlled delivery of drugs.
Intrading Tuesday on the TSX Venture Exchange, Mistral shares wereunchanged at half a cent on a trading volume of 200,000 shares.