- results in US$1.85 million of new available funds -
BELLEVILLE, ON, Sept. 9 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that the Company has allowed the conversion of a portion of its revolving credit facility with the Laurus/Valens family of funds into common shares.
The Company is converting US$1.85 million of the revolving facility into equity, at the previously negotiated 15% discount to the ten-day volume weighted average price on September 5, 2008. This results in the issuance of 4,565,049 shares. The conversion is in accordance with the formula set out in the original agreement signed in 2005. In addition, the Company will issue 211,429 five-year warrants at market price ($0.49 per share) in exchange for Laurus/Valens waiving certain volume restrictions relating to the conversion under the agreement. There is no penalty attached to this repayment. The transaction is subject to regulatory approval.
"We realize that this transaction represents some dilution to existing shareholders," said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "However, it should be considered as a component of a larger financial package that is under discussion. This package will be announced at such time as its details are agreed and found to be in the best interest of shareholders. This being said, Bioniche cannot guarantee its successful conclusion."
The Company continues to focus on its strategic priorities: full registrations of the E. coli O157:H7 cattle vaccine in Canada and the U.S. and the successful completion of the Phase III clinical program with Urocidin in the treatment of non-muscle-invasive bladder cancer. As a part of these works, the Company has ongoing discussions with potential marketing partners related to Urocidin and continues to pursue an optimal partnership agreement. The Company is also making progress on the $25 million scale-up of its vaccine manufacturing facility in Belleville, Ontario, funded primarily through Canadian and Ontario government programs.
About Bioniche Life Sciences Inc.
Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary products for human and animal health markets worldwide. The fully-integrated company employs approximately 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in human and animal health. Bioniche has been named one of Canada's Top Ten Life Sciences Companies for 2008. For more information, please visit http://www.Bioniche.com.
Except for historical information, this news release may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements 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.
|SOURCE Bioniche Life Sciences Inc.|
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