BELLEVILLE, ON, 27th January 2011 – Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has successfully completed its Australian offer raising A$12.5 million and has listed on the Australian Securities Exchange, with the code “BNC”.
Bioniche’s Australian Offer of 8.6 million CHESS Depositary Instruments (CDIs) at A$1.45 per CDI, raised gross proceeds of A$12.5 million. This is in addition to the C$16.7 million raised through a concurrent Canadian Offer of 11.5 million Common Shares at C$1.45 per Share that closed on December 16, 2010. Total proceeds from the two Offers are approximately C$29.4 million (approx A$29.9 million) based on a January 3, 2011 exchange rate of C$1.021 per A$.
Bioniche now has 100.3 million Common Shares issued and outstanding, of which 8.6 million will be represented by an equal number of CDIs to allow Australian shareholders to trade their shareholding through the Australian CHESS system. This represents a market capitalization of C$150.5 million (approx A$153.4 million), based on a December 31, 2010 closing price of C$1.50 per Share. A total of 20.1 million new Common Share equivalents will be issued from treasury pursuant to the two concurrent Offers.
The funds raised from the Australian Offer, and a concurrent Canadian Share Offer, will be used to expand Bioniche’s current manufacturing capacity for Urocidin™, its late stage (Phase III) product targeting bladder cancer, support development of other products in the Company’s human and animal health pipeline, including a field trial required for full US license of Econiche™, a food safety vaccine to prevent the spread of E. coli O157, and acquire new products and technologies with a strategic fit.
Graeme McRae, the Australian-born Chairman, President & CEO of Bioniche says the Company is very pleased with the interest shown by Australian institutional and retail investors, as well as with the continued support from the Canadian market.
“We have had tremendous support for the Offers, both in Australia and in Canada. The listing on the ASX provides Australian investors a unique opportunity - to invest in a life science company with strong existing revenues and a promising late-stage product pipeline. Our proven track record in discovering and commercializing new products has been one of the reasons behind the strong investor interest: Bioniche has a portfolio of over 60 products for the global animal health market and has been listed on the Toronto Stock Exchange since 1992.
“We are also soon expecting to reach a number of near term milestones, including sharing results of a Phase III clinical trial for our therapeutic targeting human bladder cancer (Urocidin™) that continues its Phase III clinical program with a US commercial partner. We believe this is a much-needed therapy, with bladder cancer being the fourth most common cancer in men and the eleventh most common in women in the United States and no new effective therapeutic option in over 35 years."
For the commercialisation of its bladder cancer drug, Urocidin™, Bioniche has entered into a global license, development and supply agreement with Endo Pharmaceuticals Inc, a subsidiary of Endo Pharmaceuticals Holdings Inc. (NASDAQ: ENDP) (Endo), a US-based leading specialty healthcare solutions company.
Bioniche has also developed the first vaccine to help prevent the spread of E. coli O157 from cattle into the food supply. This is approved for use in Canada and a US conditional license is pending. The Company plans to conduct a field trial to support a full license application in the US, followed by license applications in Australia, Europe and Latin America.
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.
For further information, please contact:
T: (613) 9866 4722
M: (613) 401 01 8828
Jennifer Shea, Vice-President, Communications, Investor & Government Relations
Bioniche Life Sciences Inc.
T: (613) 966-8058
M: (613) 391-2097