Better Health. Better Life.

M Pharmaceutical Inc. closes acquisition of RX Global Capital Inc.

April 28, 2015

Vancouver, B.C., Canada – M Pharmaceutical Inc. (the "Company") (CSE:MQ), announced today that it has closed its previously announced acquisition of RX Global Capital Inc., a private company that holds as its sole asset an exclusive, world-wide license agreement from EatLittle Inc. covering all  development and production rights to temporary controllable pseudobezoars, an innovative method for non-invasive dynamic gastric volume reduction for weight loss, and several other medical applications. The Company issued a total of 9,522,400 common shares at a deemed price of $0.25 per share, including 3,500,000 shares to EatLittle Inc. pursuant to the license agreement. These 3,500,000 shares are subject to a 3 year escrow agreement, with 10% of the escrowed shares being immediately releasable, and the balance being released in equal tranches every six months thereafter. The Company also issued 5,664,000 replacement warrants, exercisable at $0.25 per warrant.

Dr. Martin Mintchev, President and CEO of the Company, and one of the inventors of this technology, said "This technology has several exciting applications beyond that of a weight loss implement. We will be pursuing further development into these areas, including as a diagnostic device or a drug delivery system. With the closing of this acquisition, we can now concentrate on moving both the eMosquito and the psuedobezoars technologies forward."

About M Pharmaceutical Inc.

M Pharmaceutical Inc. is committed to developing and commercializing innovative medical technologies that improve the health and quality of life for people affected by obesity and diabetes. The Company currently has exclusive rights to a family of biomedical technologies including the eMosquito, for automatic and autonomous monitoring of blood glucose by diabetics, and the temporary controllable pseudobezoars, an innovative method for non-invasive dynamic gastric volume reduction for weight loss that has been recently tested in blind, placebo-controlled human studies. Commercial development of the eMosquito and pseudobezoar technologies will require successful coordination and execution of a wide variety of technology disciplines.

For more information contact:

Investor Relations
Phone: 604.428.0511           

info@m-pharma.ca
www.m-pharma.ca

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. This news release includes forward-looking statements with respect to the commercialization of the eMosquito and pseudobezoar technologies.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com and such factors as the Company failing to successfully commercialize the eMosquito and pseudobezoar technologies.

 

Drug Treatment Portfolio

Obesity, Weight Management Treatment

C-103 is a novel reformulation of orlistat, patented until 2030 in the U.S.  Orlistat is FDA-approved for weight management and sold by Roche as Xenical® (prescription) and by GlaxoSmithKline as alli® (over-the-counter).  Proven safe and effective in over 100 clinical trials, orlistat is the best-selling weight loss medication of all time with peak sales over $900 million in 2007.  The C-103 reformulation addresses adverse events reported by over 90% of orlistat users. These adverse events have led to the decline in Orlistat sales to approximately $200 million in recent years. 

C-103 is intended to maintain the efficacy of orlistat while minimizing its socially unacceptable adverse events. Unlike other weight loss drugs:

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