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Akela Pharma, Inc. Announces Notice of Asset Foreclosure on Formulation Technologies, LLC

Akela Pharma, Inc. Announces Notice of Asset Foreclosure on Formulation 
Technologies, LLC 
VANCOUVER, Feb. 22, 2013 /CNW Telbec/ - Akela Pharma, Inc. (the "Corporation") 
has announced that its wholly owned subsidiary, Formulation Technologies, LLC 
received a notice of default and that on February 13, 2013, the Subsidiary 
also received a Notice of Disposition of Collateral on Default from a secured 
creditor. 
On December 13, 2012, Formulation Technologies, LLC d/b/a PharmaForm (the 
"Subsidiary"), the primary operating entity of Akela Pharma, Inc., entered 
into a facility lease (the "Lease") with Alliance Diversified Holdings LLC, a 
Delaware LLC, ("Alliance") for a facility located in San Diego, California. 
In connection with the execution of the lease, the Subsidiary entered into a 
Loan and Security Agreement with Biotech Investment Group, LLC, a Delaware 
LLC, ("Biotech") relating to the funding of certain tenant improvements, 
relocation costs, security deposit, portions of rents related to the leased 
San Diego facility and certain other cash needs. On December 31, 2012, the 
Corporation defaulted on its interest payments due to its senior secured 
creditors. Over the past several months, the Corporation, Biotech and a 
senior secured creditor of the Corporation (collectively, the "Parties") had 
been negotiating a transaction in an attempt to reach an acceptable settlement 
of the default claims of the Corporation's senior secured creditors and for 
the funding of future operations. While several agreements by and amongst 
the Parties were executed in January 2013, the Parties were ultimately unable 
to reach an agreement on all the issues and the intended results of the 
negotiations failed to materialize. 
On February 5, 2013, the Corporation was notified that Biotech was 
discontinuing discussions with the Corporation and the senior secured 
creditor. On February 7, 2013, the Subsidiary was notified by Alliance that 
the Subsidiary was in default of the Lease entered into on December 13, 2012 
between the Subsidiary and Alliance. On February 7, 2013, the Subsidiary was 
notified by Biotech as a result of being in default of the Lease, the 
Subsidiary was in default of terms of the Loan and Security Agreement dated 
December 13, 2012. 
On February 13, 2013, the Subsidiary received a Notice of Disposition of 
Collateral on Default (the "Notice") from Biotech. The Notice was issued by 
Biotech as the Secured Party to the Loan and Security Agreement between 
Biotech and the Subsidiary. The Subsidiary was also notified that Biotech 
intended to foreclose and enforce is security interest on the Collateral (as 
defined in the Loan and Security Agreement between the Subsidiary and Biotech) 
which includes substantially all the assets of the Subsidiary. 
Upon the conclusion of these transactions, the Corporation does not anticipate 
there to be any recovery for the shareholders or creditors of Akela Pharma, 
Inc. 
The Corporation has not made the required filings of the Corporation's interim 
financial statements, management's discussion and analysis nor the CEO and CFO 
certifications for the period ended September 30, 2012 and was placed on the 
list of delinquent filers. The Corporation's securities remain under a cease 
trade order that was originally put in place on November 23, 2012 by the 
Investment Industry Regulatory Organization of Canada (IIROC). The 
Corporation voluntarily delisted from the Toronto Stock Exchange on December 
7, 2012. 
About Akela Pharma, Inc. 
Akela Pharma, Inc.'s common shares are not registered for trading on any 
regulated exchange. There are approximately 32.4 million shares outstanding. 
This press release contains statements which may constitute forward-looking 
information under applicable Canadian securities legislation or 
forward-looking statements within the meaning of the United States Private 
Securities Litigation Reform Act of 1955. Such forward-looking statements or 
information may include financial and other projections as well as statements 
regarding the company's future plans, objectives, performance, revenues, 
growth, profits, operating expenses or the company's underlying assumptions. 
The words "may", "would", "could", "will", "likely", "expect", anticipate", 
"intend", "plan", "forecast", "project", "estimate" and "believe" or other 
similar words and phrases may identify forward-looking statements or 
information. Persons reading this press release are cautioned that such 
statements or information are only expectations, and that the company's actual 
future results or performance may be materially different. 
Such forward-looking statements or information involve known and unknown 
risks, uncertainties and other factors that may cause our actual results, 
events or developments to be materially different from results, events or 
developments expressed or implied by such forward-looking statements or 
information. Such factors include, among others, the possibility that risks 
associated with requirements for approvals by government agencies; the 
possibility that such government agency approvals will not be obtained in a 
timely manner or at all or will be conditioned in a manner that would impair 
our ability to advance development; our dependence on suppliers, collaborative 
partners and other third parties and the prospects and timing for negotiating 
supply agreements, corporate collaborations or licensing arrangements; our 
ability to attract and retain key personnel; and other factors as described in 
detail in our filings with the Canadian securities regulatory authorities at 
http://www.sedar.com. 
In the event that any of these assumptions prove to be incorrect, or in the 
event that we are impacted by any of the risks identified above, we may not be 
able to continue in our business as planned. 
For a complete discussion of the assumptions, risks and uncertainties related 
to our business, you are encouraged to review our filings with Canadian 
securities regulatory authorities, filed on SEDAR at http://www.sedar.com. 
All forward-looking statements and information made herein are based on our 
current expectations as of the date hereof and we disclaim any intention or 
obligation to revise or update such forward-looking statements and information 
to reflect subsequent events or circumstances, except as required by law. 
Akela Pharma, Inc. 
Rudy J. Emmelot President and Chief Executive Officer Tel: 512-834-0449 
SOURCE: AKELA PHARMA INC. 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/22/c7865.html 
CO: AKELA PHARMA INC.
ST: British Columbia
NI: MTC FIN  
-0- Feb/22/2013 19:34 GMT
 
 
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