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Bioniche Life Sciences Inc. (BNC) Secures $20 Million, Reduces Cash Burn Rate  
3/19/2012 6:59:27 AM

BELLEVILLE, ON, March 18, 2012 /PRNewswire/ - Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has accepted an offer of a US$20 million financing from investment funds managed by U.S.-based Capital Royalty L.P. (Capital Royalty).

Capital Royalty has agreed to provide a five-year term loan to Bioniche Life Sciences Inc. (the Company) to facilitate the Company's corporate growth and support its capital requirements. The terms include a 15% interest rate, with a portion deferred and capitalized for the first three years of the term of the loan. An additional royalty interest of 2% will be paid to Capital Royalty on all product sales revenues for the term of the loan. Principal repayments of eight equal installments begin in June, 2015.

The transaction is expected to close on or around April 5, 2012.

"We are very pleased that Capital Royalty has expressed its confidence in the Company through this strategic investment," said Mr. Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "Through the due diligence process, Capital Royalty has demonstrated an excellent understanding of our business and commercialization program. It is particularly gratifying to be able to receive such an investment with no dilution of our equity shareholders."

"We welcome the opportunity to develop and fund customized financing structures for innovative life science companies like Bioniche," said Charles Tate, Chairman & Founder of Capital Royalty L.P. "The Company has a diverse base of existing revenue in addition to exciting opportunities for future growth."

Further information about this transaction will be made available via the Company's filings on www.SEDAR.com and www.asx.com.au within the next 10 business days.

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 Food Safety. The Company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value.

Bioniche Life Sciences Inc. has been named one of the Top 50 Best Small and Medium-Sized Employers in Canada for 2011. For more information, please visit www.Bioniche.com.

About Capital Royalty L.P.

Capital Royalty L.P. is a market pioneer and innovator in healthcare investing focused on intellectual property investments in approved products through structures including royalty bonds, secured debt, revenue interests and traditional royalty monetizations. Capital Royalty works directly with leading healthcare companies, research institutions and inventors to provide customized solutions to meet their unique financing needs. The value of each investment is based on the future revenue of commercialized biopharmaceutical products and medical technologies. Capital Royalty is actively making investments through its managed investment funds.

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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