IntelGenx granted court approcal of sale proposal from Atai Life Sciences

IntelGenx Technologies (IGXT) announces that the Company and its subsidiary IntelGenx have obtained on September 30, 2024 an approval and vesting order from the Superior Court of Quebec issued in connection with the previously announced proceedings instituted pursuant to the Companies’ Creditors Arrangement Act. The Approval and Vesting Order approved the previously announced transactions contemplated in the sale proposal from atai Life Sciences AG (ATAI), as well as the implementation of a reorganization of the IGX Entities that involves: the incorporation of two new entities to ultimately hold certain excluded liabilities of IGX and certain excluded assets, and the exchange of the shares of IGX, on a one-for-one basis, for common shares of New ParentCo. Pursuant to the Transaction, which closed on October 2, 2024, atai acquired all of the issued and outstanding shares of IGX. The Transaction was structured as a credit bid, whereby atai agreed that its senior secured debt in IntelGenx was discharged in exchange for IGX shares. No atai equity or cash was exchanged in connection with this Transaction. Based on the terms of the Transaction and the consideration received by New ParentCo, holders of the Company’s shares will not receive any payments for, or distributions on, their shares in connection with the CCAA proceedings. It is also expected that the Company, Residual IGX and New ParentCo, entities that will hold the remaining assets and liabilities that atai chose not to purchase as part of the Transaction, will file for bankruptcy in the coming weeks under the laws of their respective jurisdictions.