ProMetic Life Sciences Inc. Announces Positive Change to Terms of Secured Debt
Published: Jan 31, 2011
MONTREAL, QUEBEC--(Marketwire - January 31, 2011) - ProMetic Life Sciences Inc. (TSX: PLI) ("ProMetic") today announced the restructuring of secured loans provided to the Company by a select group of stakeholders. The restructuring arrangements will postpone repayment of $4 M CDN of ProMetic's secured debt originally scheduled to occur in the first half of 2011 to July 1st 2012.
Mr. Pierre Laurin, ProMetic's President and Chief Executive Officer stated: "This demonstrates the confidence which these stakeholders have in ProMetic's underlying value. These stakeholders' interests are aligned with those of ProMetic's shareholders and their objective is to ensure that the Company has sufficient operating capital to deliver on key milestones and increase shareholder value."
"The Company has been moving towards a positive EBITDA and this debt restructuring gives ProMetic the leeway to be selective in its financial and strategic partnerships. The restructuring of the secured debt reinforces Management's implementation of strategies to maximise ProMetic's cash runway while minimizing the dilutive impact on existing shareholders," indicated Mr. Bruce Pritchard, ProMetic's Chief Financial Officer.
As consideration for the above-mentioned debt restructuring, the stakeholders will collectively receive 4,508,499 shares in ProMetic's share capital at market price, representing 1.28% of ProMetic's outstanding shares or 1.26% on a fully diluted basis. The stakeholders shall also collectively receive 2,857,139 warrants, which if exercised could, collectively with the above-mentioned shares, represent 2.08% of ProMetic's outstanding shares or 2.04% on a fully diluted basis. The Toronto Stock Exchange has given conditional approval to this issuance of shares and granting of warrants.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. ("ProMetic") (www.prometic.com) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand™ technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the US, Europe, Asia and in the Middle-East.
Forward Looking Statements
This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 24 of ProMetic's Annual Information Form for the year ended December 31, 2009, under the heading "Risk and Uncertainties related to ProMetic's business". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless indicated otherwise.
ProMetic Life Sciences Inc.
President and CEO
ProMetic Life Sciences Inc.
Manager, Investor Relations & Communications