- borrowing limit extended to US$5.5 million -
BELLEVILLE, ON, Dec. 21 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that the Company has renewed and amended the terms of its long-term convertible debt with Laurus Master Funds.
Under the renewed and amended note, the Company will now have a maximum borrowing limit of US$5.5 million, versus a previous maximum of US$4.0 million.
The Company's capacity to borrow under the note is determined by a formula which measures existing levels of inventory and accounts receivable. This formula is now being amended to increase the Company's capacity to borrow. Assuming the Company maintains its current levels of inventory and accounts receivable, it will have access to the full amended line of credit of US$5.5 million. Under the previous terms, the Company's capacity to borrow was limited to approximately US$2.5 million based on the current monthly asset base. This amendment will, therefore, represent an immediate increase to available funds of US$3.0 million with no restriction from asset base calculation.
For this renewal and amendment, the Company will pay a fee of US$1.0 million. This fee will be due and payable upon maturity of the loan in December, 2008 or when the loan is paid in full. The fee may be paid in shares or cash at the Company's discretion. If paid in shares, the shares will be priced at the ten-day volume weighted average price on the day of payment.
"We appreciate the flexibility of Laurus Master Funds in renewing its support for Bioniche and in granting these amendments," said Graeme McRae, President & CEO of Bioniche Life Sciences Inc. "Our liquidity has now been further strengthened as we continue to work to execute our Phase III clinical development program for Urocidin in bladder cancer while negotiating a partnership deal related to this technology, and scaling up production of our E. coli O157:H7 cattle vaccine while pursuing registrations in the U.S. and Canada."
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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