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
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.