Lorus enters deal with HighTech Beteiligungen

Lorus Therapeutics, a Canadian biopharmaceutical company specializing in the R&D of pharmaceutical products and technologies for the management of cancer, says it has entered into an agreement with HighTech Beteiligungen GmbH & Co to issue 28.8 million common shares at $0.36 each for gross proceeds of $10.4 million. The subscription price represents a premium of 7.5% over the closing price of the common shares on the Toronto Stock Exchange on July 13, 2006.

The closing is subject to certain conditions, including the approval of the Toronto Stock Exchange, the American Stock Exchange and the filing and clearance of a prospectus in Ontario qualifying the issuance of the common shares. The transaction is expected to close on or before August 14, 2006.

In connection with the transaction, HighTech will receive demand registration rights that will enable it to request the registration or qualification of the common shares for resale in the USA and Canada, subject to certain restrictions. These demand registration rights will expire on June 30, 2012. In addition, High Tech will have the right to nominate one nominee for the board of directors of Lorus or, if it does not have a nominee, it will have the right to appoint an observer to the board.