Inex Pharmaceuticals Corporation has filed with securities regulators, in Canada and mailed to shareholders the information circular and proxy materials for the shareholders' meeting September 20, 2006 at which Inex will seek approval to spin out the company's technology, products, cash and partnerships into Tekmira Pharmaceuticals Corporation

Timothy M Ruane, president and CEO of Inex, said the spinout transaction would be the culmination of a number of recent achievements for the company. "Inex has been very successful over the past number of months including closing the Hana Biosciences, Inc. product development partnership, announcing and then expanding the collaboration with Alnylam Pharmaceuticals, Inc. and eliminating our convertible debt."

"We are confident that Tekmira will become a company with all the attributes necessary to take Inex's promising oligonucleotide based products forward into clinical trials, to work with and benefit from the product development achievements of Inex's existing partners and to build significant value for shareholders," Ruane said.

As previously announced, the spinout of Tekmira will take place by way of a Plan of Arrangement between Inex and its shareholders. Highlights of the spinout include transferring to Tekmira:

Completion of this Plan of arrangement will allow Inex, having no pharmaceutical assets, to complete a financing with an investor group led by Sheldon Reid, a co-founder of Energy Capitol Resources Ltd. The Investor Group will invest up to $5.6 million in Inex by way of convertible debentures. Upon conversion of the debenture following the completion of the reorganization, the Investor Group will hold 100 per cent of non-voting shares in Inex and 80 per cent of the total number of shares outstanding. Therefore, current Inex common shareholders will own 20per cent of the equity of Inex and 100 per cent of the Tekmira shares.