Intellipharmaceutics
Announces Settlement Agreement in
Class Action Lawsuit, Which is Subject to Court
Approval
Toronto, Ontario, November 7, 2019, Intellipharmaceutics
International Inc. (OTCQB: IPCIF and TSX:IPCI)
("Intellipharmaceutics" or the "Company"), a pharmaceutical company
specializing in the research, development and manufacture of novel
and generic controlled-release and targeted-release oral solid
dosage drugs, announced today that the parties in Shanawaz v.
Intellipharmaceutics International, Inc., an action pending in New
York asserting claims under the U.S. federal securities laws on
behalf of an alleged class of investors in Intellipharmaceutics
common stock against the Company, its chief executive officer, Dr.
Isa Odidi, who is also a member of its board of directors, and its
former chief financial officer Domenic Della Penna, have entered
into a stipulation of settlement to resolve all claims asserted in
the action.
The
settlement is subject to the approval of the court following notice
to class members. The stipulation of settlement provides for a
settlement payment of US$1.6 million, which
Intellipharmaceutics anticipates will be funded by available
insurance. As part of the settlement, the Company also agreed to
contribute to the settlement fund specific anticipated Canadian tax
refunds of up to US$400,000 to the extent received within
18 months after the entry of final judgment. The stipulation
acknowledges that the Company and the other defendants continue to
deny that they committed any violation of the U.S. securities laws
or engaged in any other wrongdoing and that they are entering into
the settlement at this time based on the burden, expense, and
inherent uncertainty of continuing the litigation.
Although
the Company believes that the settlement represents a fair and
reasonable compromise of the matters in dispute in the litigation,
there can be no assurance
that the court will approve the stipulation of settlement as
proposed, or at all. If the stipulation of settlement is not
approved or otherwise fails to become effective, then the parties
will be returned to their respective positions in the litigation as
of August 9, 2019.
About Intellipharmaceutics
Intellipharmaceutics International
Inc. is a pharmaceutical company specializing in the research,
development and manufacture of novel and generic controlled-release
and targeted-release oral solid dosage drugs. The Company's
patented Hypermatrix™
technology is a multidimensional controlled-release drug delivery
platform that can be applied to a wide range of existing and new
pharmaceuticals. Intellipharmaceutics has developed several drug
delivery systems based on this technology platform, with a pipeline
of products (some of which have received FDA approval) in various
stages of development. The Company has ANDA and NDA 505(b)(2) drug
product candidates in its development pipeline. These include the
Company’s abuse-deterrent
oxycodone hydrochloride extended release formulation
(“Oxycodone ER”) based on its proprietary
nPODDDS™ novel Point Of
Divergence Drug Delivery System (for which an NDA has been filed
with the FDA), and Regabatin™ XR (pregabalin extended-release
capsules).
Cautionary Statement Regarding Forward-Looking
Information
Certain statements in this document
constitute “forward-looking statements” within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and/or “forward-looking information” under
the Securities Act (Ontario). These statements
include, without limitation, statements expressed or implied
regarding our expectations regarding our plans, goals and
milestones, status of developments or expenditures relating to our
business, plans to fund our current activities, and statements
concerning our partnering activities, health regulatory
submissions, strategy, future operations, future financial
position, future sales, revenues and profitability, projected costs
and market penetration and risks or uncertainties related to our
ability to comply with OTCQB and TSX
requirements. In some cases,
you can identify forward-looking statements by terminology such as
“appear”, “unlikely”, “target”,
"may", "will", "should", "expects", "plans", "plans to",
"anticipates", "believes", "estimates", "predicts", "confident",
"prospects", "potential", "continue", "intends", "look forward",
"could", “would”, “projected”,
“goals”, “set to”, “seeking” or
the negative of such terms or other comparable terminology. We made
a number of assumptions in the preparation of our forward-looking
statements. You should not place undue reliance on our
forward-looking statements, which are subject to a multitude of
known and unknown risks and uncertainties that could cause actual
results, future circumstances or events to differ materially from
those stated in or implied by the forward-looking statements. Risks
and uncertainties relating to us and our business can be found in
the "Risk Factors" section of our latest annual information form,
our latest Form 20-F, and our latest Form F-1 and Form F-3
registration statements (including any documents forming a part
thereof or incorporated by reference therein), as amended, as well
as in our reports, public disclosure documents and other filings
with the securities commissions and other regulatory bodies in
Canada and the U.S., which are available on www.sedar.com and
www.sec.gov. The forward-looking statements reflect our current
views with respect to future events and are based on what we
believe are reasonable assumptions as of the date of this document
and we disclaim any intention and have no obligation or
responsibility, except as required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Trademarks used herein are the property of their respective
holders.
Unless the context otherwise requires, all references to "we,"
"us," "our," "Intellipharmaceutics," and the "Company" refer to
Intellipharmaceutics International Inc. and its
subsidiaries.
CONTACT INFORMATION
Company
Contact:
Intellipharmaceutics
International Inc.
Greg
Powell
Chief
Financial Officer
416.798.3001
ext. 106
investors@intellipharmaceutics.com