Telesta Therapeutics Inc. announces closing of arrangement with Prometic Life Sciences Inc.

MONTREAL, Oct. 31, 2016 /CNW Telbec/ - Telesta Therapeutics Inc. (TSX: TST; PNK: BNHLF) ("Telesta") is pleased to announce the closing of its previously announced plan of arrangement (the "Arrangement") with ProMetic Life Sciences ("ProMetic"), pursuant to which ProMetic has acquired all of the issued and outstanding common shares of Telesta.

Under the terms of the Arrangement, all of the issued and outstanding common shares of Telesta were acquired by ProMetic and exchanged for ProMetic common shares at a rate of one Telesta common share for 0.04698 of one ProMetic common share, rounded down to the nearest whole ProMetic common share. The number of ProMetic common shares issued to Telesta shareholders was based on the five-day volume weighted average trading price ("VWAP") of ProMetic common shares on the Toronto Stock Exchange ("TSX") prior to the date of closing of Arrangement. At the end of trading on the TSX on Friday, October 28, 2016, the VWAP of ProMetic's common shares was $2.98.

Articles of arrangement have been filed and we expect to receive the certificate of arrangement during the day.

In order to receive ProMetic common shares in consideration for their Telesta common shares, registered shareholders of Telesta must complete, sign, date and return the letter of transmittal to Telesta's transfer agent, CST Trust Company, in accordance with the instructions set out therein and in Telesta's proxy circular in respect of the Arrangement dated September 16, 2016.

The letter of transmittal is available from CST Trust Company, (i) by telephone at: 1(800) 387-0825 (North American Toll Free) or outside Canada and the U.S. at [phone]; (ii) by email at [email protected]; or (iii) under Telesta's issuer profile on SEDAR at www.sedar.com.

Non-registered shareholders of Telesta should contact their intermediary to arrange for their intermediary to complete the necessary steps to ensure that they receive their ProMetic common shares in consideration for their Telesta common shares as soon as possible.

Except for historical information, this news release may contain "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws that reflect the Company's current expectation regarding future events. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while, considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements and information. These forward-looking statements and information involve risk and uncertainties, which may cause, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.

SOURCE Telesta Therapeutics Inc.

Donald Olds, Chief Operating Officer, Telesta Therapeutics Inc., Telephone: [phone], [email protected]