- 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 technolog
|SOURCE Bioniche Life Sciences Inc.|
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