IntelGenx obtains court approval of sale, investment solicitation process

As previously announced on May 17, 2024, IntelGenx Technologies was granted protection pursuant to an initial order issued under the Companies’ Creditors Arrangement Act by the Quebec Superior Court. The Initial Order appointed Ernst & Young Inc. as monitor and authorized interim debtor-in-possession financing provided by atai Life Sciences AG in order to allow the Company to continue its operations during the restructuring process and implement the necessary restructuring measures. On May 27, 2024, IntelGenx obtained an order from the Court approving the implementation of a sale and investment solicitation process intended to generate interest in either the business or the assets of IntelGenx, or in a recapitalization of IntelGenx, with the goal of implementing one or more transaction. The SISP Approval Order provides that the SISP will be conducted by the Monitor. As part of the SISP Approval Order, the Court also approved the agreement of purchase and sale between IntelGenx, as vendor, and atai Life Sciences AG, as purchaser, solely for the purpose of constituting the “stalking horse” bid under the SISP. The Stalking Horse Bid establishes a baseline price and deal structure for the solicitation of superior bids from qualified interested parties and provides certainty that a going-concern solution for the business of IntelGenx has already been identified. All qualified interested parties will be provided with an opportunity to participate in the SISP. The SISP is intended to solicit interest in and opportunities for a broad range of executable transaction alternatives involving the business and assets of IntelGenx, through one or more sales or partial sales of all, substantially all, or certain portions of the business and assets, and/or an investment in, restructuring, recapitalization, refinancing or other form of reorganization of IntelGenx or its business. The SISP will be conducted as a two-phase process with the Phase 1 Non-Binding LOI Submission Deadline set for 5:00 p.m. on July 15, 2024.