Reducol Assets Sold to Pharmachem

VANCOUVER, British ColumbiaForbes Medi-Tech Inc. (OTCBB: FMTI) announced its shareholders on Aug. 24 approved the sale of substantially all the assets of the company to Pharmachem Laboratories for cash consideration of US$4.0 million. The deal was completed Aug. 26 and the company changed its name to FMI Holdings. At the Aug. 24 meeting, shareholders also approved the liquidation of the company and appointment of Abakhan & Associates as liquidator.

In connection with the liquidation, one distribution will be made to shareholders that will include the cash proceeds from the sale less any payments made in respect of Forbes remaining ongoing costs and liabilities. Net proceeds of the liquidation should be in the range of Cdn$0.50 to Cdn$0.58 per share. The distribution is expected to occur within six months, following completion of a claims procedure to be established by Abakhan & Associates. Following the distribution, FMTIs shares will be cancelled and de-listed from OTCBB. Everything should be wrapped up in the first quarter of 2011.