- results in US$1.75 million of new available funds -
BELLEVILLE, ON, March 27 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that the Company has exercised its right under the agreement to repay US$1.75 million of its secured revolving credit facility with Valens U.S. (formerly Laurus Master Funds) in common shares.
The conversion is in accordance with the formula set out in the original agreement signed in 2005. The shares will be priced at the ten day market average less 15% which equates to 2,671,900 shares. In addition, the Company will issue 200,000 five-year warrants at market price ($0.77 per share) in exchange for Valens waiving certain volume restrictions relating to the conversion under the agreement. There is no penalty attached to this repayment.
This conversion will result in new available funds of US$1.75 million. As a result, the Company's capacity to borrow under the revolving credit facility after the conversion will be approximately US$3.2M, determined by a formula which measures existing levels of inventory and accounts receivable.
"Again we appreciate the support and flexibility of our bankers, Valens U.S.," said Patrick Montpetit, Chief Financial Officer of Bioniche Life Sciences Inc. "This private placement will improve our liquidity as we continue to execute our Phase III clinical development program with Urocidin in bladder cancer and begin the construction of a facility in which to scale-up production of our E. coli O157:H7 cattle vaccine in Belleville, Ontario."
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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