Pharmachem Sweetens Offer for Reducol Maker

VANCOUVER, British ColumbiaForbes Medi-Tech (OTCBB: FMTI) announced Pharmachem Laboratories further increased its revised offer, submitted Aug. 9, to purchase the companys assets from US$2.9 million to US$4.0 million. The Forbes board of directors confirmed the increased offer is still more favorable to the companys shareholders than the Aug. 5 asset purchase agreement signed with MHT LLC and is a superior" offer; MHT now has until Aug. 19 to make an offer at least as favorable to the Forbes shareholders as the new Pharmachem proposal. If MHT does not make an offer, Forbes board will consider withdrawing from its agreement with MHT to enter into a definitive agreement with Pharmachem.

In addition, Forbes convened its annual and special meeting of shareholders on Aug. 16; however, it will postpone voting on the asset sale and subsequent liquidation until the company can publicly disclose sufficient information on final terms of the move for shareholders to make their decision. The meeting will be convened and then adjourned following appointment of an auditor and election of directors; it will reconvene after MHT discloses information on final terms of the asset sale.