MONTREAL, Aug. 5 /PRNewswire-FirstCall/ - ProMetic Life Sciences Inc. (TSX:PLI) ("ProMetic") announces today that it has reached an understanding with a fully integrated, U.S.-based, biotechnology company with respect to the development and global commercialization of several biopharmaceutical products in ProMetic's Protein Technology Division.
In addition to licensing, development and milestone fees as well as on-going royalties on sales of products, the definitive agreements will provide for an initial strategic investment in ProMetic of $7 million at a share price of $0.47. This transaction is anticipated to provide a significant funding commitment towards the development and commercialization of the products, which will contribute to ProMetic's revenue growth as early as 2008.
The definitive agreements will also provide for possible additional investments in ProMetic, which may be triggered by either the biotechnology company or ProMetic, upon fulfillment of certain predetermined conditions. Further, the definitive agreements will provide the biotechnology company to have a right to representation on ProMetic's board of directors.
Definitive agreements regarding the deal, which will be subject to customary closing conditions, including TSX approval, are intended to be negotiated and executed in the following weeks.
The Company will file a short form base shelf prospectus or "shelf registration" with Canadian securities regulators in part to facilitate the completion of this transaction.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (http://www.prometic.com) is a biopharmaceutical
company specialized in the research, development, manufacture and marketing
of a variety of commercial applications derived from its proprietary
Mimetic Ligand(TM) technology. This technology is used in large-scale
purification of biologics and the elimination of pathogen
|SOURCE PROMETIC LIFE SCIENCES INC.|
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