Metamorphosis for AltaRex

AltaRex Corporation, a biotechnology company from Edmonton, Canada, has recapitalised and reorganised its business, by transferring its existing assets and liabilities to a subsidiary company, Newco, which will continue AltaRex's research and development into foreign antibodies that modulate the immune system for the treatment of certain cancers.

All of the shares of Newco will be conveyed to AltaRex's existing shareholders (on a one-for-one basis) and each existing AltaRex common shares will be exchanged for a new class of common shares on a up to 20 for 1. As part of the transaction, Newco intends to seek a public listing. Existing shareholders of AltaRex will receive shares in the new entity that will own all of the existing assets of AltaRex. The Company intends to transform itself into an oil and gas exploration and production company with the assistance of Canadian Merchant bank, Nova Bancorp. As part of this transaction, it is anticipated that the company will continue its public listing. Nova Bancorp will provide a total of CS$6.15m to recapitalise Newco and AltaRex.