IntelGenx Technologies Corporation has completed the sale of secured convertible debentures in an aggregate principal amount of U.S. $1.5 million to certain institutional and accredited investors.

May 24, 2007

Saint Laurent, Quebec. -(CCNMatthews – May 24, 2007) - IntelGenx Technologies Corporation (OTCBB:IGXT) has completed the sale of secured convertible debentures in an aggregate principal amount of U.S. $1.5 million to certain institutional and accredited investors.

The debentures mature in 28 months, bear interest at the rate of 8% per annum, and are convertible into shares of the Company’s common stock at a conversion price of $0.70. The debentures are secured by a lien on substantially all of the Company’s assets. The Company also issued common stock purchase warrants to the investors in an amount equal to the number of shares underlying the debentures.  The warrants have an exercise price of $1.02 and expire in 5 years time. 

The Company received net proceeds of approximately $1.36 million from the sale of the debentures, which will be used to support the Company’s strategic development projects, repay long-term debt, and for working capital.

Dr. Horst Zerbe, the Company’s President and Chief Executive Officer, stated that, “Securing this funding is an important element of our continued efforts to enhance our key strategic development programs. We are confident that this financing will provide the necessary resources for these efforts.”

This press release is not intended to provide a complete description of the private placement. For a detailed description of the terms of the private placement, please refer to the Company’s Current Report on Form 8-K as filed with the Securities & Exchange Commission on May 23, 2007.

ABOUT INTELGENX CORP.
IntelGenx Corp. is a drug delivery company focused on the development of oral controlled-release products as well as novel rapidly disintegrating delivery systems. The company uses its unique multiple layer delivery system to provide zero-order release of active drugs in the gastro-intestinal tract. IntelGenx has also developed novel delivery technologies for the rapid delivery of pharmaceutically active substances in the oral cavity based on its experience with rapidly disintegrating films.  The company’s research and development pipeline includes products for the treatment of osteoarthritis, pain management, hypertension, and smoking cessation.

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

CONTACT INFORMATION

IntelGenx Corp.
Dr. Horst G. Zerbe, President and CEO
T: 514-331-7440 (ext. 201)
F: 514-331-0436
horst@IntelGenx.com
www.intelgenx.com

 

The OTC.BB and OSC have not reviewed and do not accept responsibility for the adequacy or accuracy of this release. 
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