Advitech will also concurrently complete an equity financing of $2,500,000, to be provided equally by Avrio and AgeChem Venture Fund L.P. ("AgeChem"). Each of Avrio and AgeChem will acquire 7,812,500 units at a price of $0.16 per unit, each unit consisting of one post-Consolidation common share and one common share purchase warrant. Each common share purchase warrant will entitle its holder to acquire one additional post-Consolidation common share upon terms to be agreed upon by the parties at the time of closing of the equity financing, in accordance with the policies of the TSX Venture Exchange. The completion of this private placement is also subject to applicable regulatory approvals and, if applicable, shareholders' approval. The proceeds of this equity financing will be used by the resulting entity for the implementation of its business plan. Subsequent to the closure of the proposed financing, it is anticipated that SemBioSys will hold approximately a 7.5 percent interest (6 percent on a fully diluted-basis) in the combined company.
SemBioSys sub-licensed to Botaneco its proprietary aqueous oilseed processing technology in 2007 and SemBioSys will continue to provide Botaneco with the necessary technology license rights after the transaction closes. Botaneco, a company incorporated under the laws of Alberta, is a manufacturer and marketer of innovative oleosome-based ingredients to the personal care and OTC topical markets. Using its proprietary aqueous oilseed processing technology, Botaneco produces non-transgenic specialty ingredients for topical cosmetic, OTC, and Rx products within the natural personal care products sector. Botaneco operates a manufacturing facility in Calgary, Alberta as well as a sales and formulation office in Bensalem, Pennsylvania, United States of America.
|SOURCE SemBioSys Genetics Inc.|
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