IntelGenx Signs Letter Of Intent with Tilray to Enter into World-Wide Agreement to Produce Cannabis-Infused VersaFilm Products

IntelGenx Corp. (OTC:IGXT) ("IntelGenx") today announced that it has executed a non-binding letter of intent (the "LOI") with Tilray, Inc. (NASDAQ:TLRY) ("Tilray®"), a global leader inIntelGenx Corp. (OTC:IGXT) ("IntelGenx") today announced that it has executed a non-binding letter of intent (the "LOI") with Tilray, Inc. (NASDAQ:TLRY) ("Tilray®"), a global leader in cannabis research, cultivation, production and distribution, to co-develop and commercialize oral film products infused with recreational and medical cannabis ("cannabis-infused VersaFilm™"), in anticipation of amended cannabis regulations which would allow adult-use consumers to purchase edible products.

Pursuant to the LOI, subject to entering into a definitive agreement and the satisfaction of customary closing conditions, IntelGenx and Tilray will fund 20% and 80% of the costs associated with the development of the cannabis-infused VersaFilm™ products, respectively. IntelGenx will have rights to manufacture and supply the co-developed products to Tilray, and will also receive a fixed single-digit royalty on net product sales. Tilray will have the exclusive, worldwide marketing and distribution rights for the co-developed products.

The LOI also contemplates that, at the time of entering into the definitive agreement, Tilray® will make a strategic investment in IntelGenx by way of a non-brokered private placement ("Private Placement"). Tilray® will purchase 1,250,000 common shares of IntelGenx at a price of USD$0.80 per share, which is equal to the five-day volume weighted average closing price of IntelGenx' common stock on the OTCQX for the period ended September 18, 2018. IntelGenx intends to use the proceeds from the Private Placement for cannabis-infused VersaFilm™ product development in connection with the LOI. The Private Placement will be subject to the approval of the TSX Venture Exchange.

"Our proprietary VersaFilm™ drug delivery platform offers a number of proven advantages – including increased bioavailability, precision dosing, accelerated onset of action, reduced side effects, child-resistant packaging and easier, more discrete administration – all of which we believe have the potential to improve the way people may use and experience cannabis in the future," said Dr. Horst G. Zerbe, President and CEO of IntelGenx. "This LOI marks the first step in form