TORONTO, March 29, 2012 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) ("Microbix" or the "Company"), a company focused on virology and biological technologies, announces the closing of a private placement financing resulting in the issuance of 2,893,516 Units at a price of $0.27 per Unit for gross proceeds of $781,250. Each Unit consists of one common share of Microbix and one common share purchase warrant. Each whole Warrant entitles the holder to purchase one additional common share at an exercise price of $0.40 for 24 months.
Four insiders of the Company participated in the financing by purchasing an aggregate of 499,999 Units. The financing was non-brokered. An aggregate of 97,125 Finders Warrants were issued. Each Finders Warrant entitles the holder to purchase one Unit at a price of $0.36 per Unit for a period of 24 months. The securities issued in the private placement are subject to a hold period of four months and one day from the date of issue. The private placement remains subject to the final approval of the Toronto Stock Exchange.
William J. Gastle, Microbix' Chief Executive Officer offered the following brief update regarding key initiatives within the Company. " Zydus is continuing its due diligence process in connection with its interest in Urokinase. We are seeing strong market interest in Lumisort and negotiations for financing that project are moving forward. Much to our satisfaction, there are ongoing discussions with a new country to adopt and launch the Influenza Vaccine Joint Venture. Finally, our Virology business is also experiencing growth, with second quarter sales stronger than 2011 levels"
Mr. Gastle then added "The funds from the current private placement will be used to support the very important long-term opportunities I have mentioned and will help the Company to achieve its goal to be cash-flow positive by the end of this year".
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. Person absent an exemption from the registration requirements.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
About Microbix Biosystems Inc.
Microbix Biosystems Inc. specializes in the development of the most advanced vaccine production technology and markets virology and biological products worldwide. In addition, The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Microbix supplies customers in the U.S., Europe, and Asia. Established in 1988, Microbix is headquartered in Toronto.
This press release contains forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including the risks associated with development projects, operations in Foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all. These forward-looking statements represent the Companies' judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.
Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.