Paladin Labs Inc. and Bioniche Life Sciences Inc. Officially Close Debt Refinancing and Urocidin™ Licensing Deals
BELLEVILLE, ON, July 5, 2013 /PRNewswire/ - Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC) ("Bioniche") and Paladin Labs Inc.(TSX: PLB) ("Paladin") today announced the official closing of the various agreements associated with a comprehensive strategic collaboration to refinance and increase Bioniche's debt, provide new equity, and enter into the first licensing deal for Bioniche's Phase III bladder cancer product - Urocidin. This collaboration was originally announced on June 5, 2013.
The closing of these deals has resulted in the issuance of a further $5 million in debt financing to Bioniche from Paladin.
As partial consideration for the entering into of the amended loan transaction, Bioniche granted Paladin Warrants to acquire Common Shares ("Warrants"), such Warrants to expire on the earlier of two years from the complete repayment by Bioniche of the loan or May 31, 2019. The following number of Warrants were issued to Paladin, subject to the terms noted below:
- 750,000 Warrants at an exercise price of $0.31
- 500,000 Warrants at an exercise price of $0.50
- 250,000 Warrants at an exercise price of $0.70
- 250,000 Warrants at an exercise price of $0.85
- 250,000 Warrants at an exercise price of $1.00
- If the loan has not been repaid by Bioniche by January 1, 2014, 500,000 Warrants will be exercisable at an exercise price equal to the 5-day volume weighted average share price calculated as at December 31, 2013.
- If the loan has not been repaid by Bioniche by April 1, 2014, 500,000 Warrants will be exercisable at an exercise price equal to the 5-day volume weighted average share price calculated as at March 31, 2014.
Bioniche is not required to seek shareholder approval in connection with the issuance of the Warrants to Paladin.
About UrocidinTM
Urocidin is a formulation of MCC, a sterile mycobacterial cell wall-DNA complex composition that has a dual mode of action: immune stimulation and direct anticancer activity. UrocidinTMis formulated for the treatment of bladder cancer, where it is administered by trans-urethral catheter directly into the bladder. The agent is then able to directly interact with the cells of the immune system and bladder cancer cells.
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at www.paladinlabs.com.
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 and innovative products for human and animal health markets worldwide. The fully-integrated company employs more than 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and One Health. The Company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value. For more information, please visit www.Bioniche.com.
Bioniche Forward Looking Statement
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.
Paladin Labs Forward Looking Statement
This press release may contain forward-looking statements and
predictions. These forward-looking statements, by their nature,
necessarily involve risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
forward-looking statements. The Company considers the assumptions on
which these forward-looking statements are based to be reasonable at
the time they were prepared, but cautions that these assumptions
regarding the future events, many of which are beyond the control of
the Company and its subsidiaries, may ultimately prove to be incorrect.
Factors and risks, which could cause actual results to differ
materially from current expectations, are discussed in the annual
report as well as in the Company's Annual Information Form for the year
ended December 31, 2012. The Company disclaims any intention or
obligation to update or revise any forward-looking statements whether
as a result of new information or future events and except as required
by law. For additional information on risks and uncertainties relating
to these forward-looking statements, investors should consult the
Company's ongoing quarterly filings, annual report and Annual
Information Form and other fillings found on SEDAR at www.sedar.com.
SOURCE Bioniche Life Sciences Inc.
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