BELLEVILLE, Ontario, Oct. 2 /PRNewswire-FirstCall/ -- Bioniche Life Sciences Inc. , a research-based, technology-driven Canadian biopharmaceutical company, today announced the approval by its Board of Directors of the adoption of a Shareholder Rights Plan (the "Rights Plan") to ensure, to the extent possible, that its shareholders are treated fairly in connection with certain take-over bids for its common shares. Adoption of the Rights Plan is subject to regulatory approval.
The Rights Plan is effective upon the later of the Toronto Stock Exchange's consent to the adoption of the Rights Plan and the entering into of a form of shareholder rights plan agreement between Bioniche and the rights agent. The Rights Plan will be submitted for ratification by shareholders at the Corporation's Annual and Special Meeting of Shareholders on November 7, 2006.
Bioniche believes that the Rights Plan preserves the fair treatment of shareholders, is generally consistent with Canadian corporate practice, and addresses institutional investor guidelines.
The Rights Plan is not intended to prevent take-over bids. Pursuant to the terms of the Rights Plan, Bioniche will distribute one right for every common share outstanding as at the "Record Time". The rights issued under the Rights Plan become exercisable only when a person, including any party related to it, acquires or announces its intention to acquire 20% or more of Bioniche's outstanding common shares without complying with the "Permitted Bid" provisions or without approval of the Board of Directors. Should such an acquisition occur, each right would entitle a holder, other than the "Acquiring Person" and persons related to it, to purchase common shares of Bioniche at a substantial discount to the market value of such shares. A Permitted Bid must be made by way of a take-over bid circular prepared in compliance with applicable securities laws, remain open for 60 days and satisfy certain other conditions.
Bioniche is not aware of any pending or threatened take-over bid for Bioniche.
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 products for human and animal health markets worldwide. The fully-integrated company employs approximately 185 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in human and animal health. For more information, please visit http://www.Bioniche.com.
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: Jennifer Shea Corporate Communications & Investor Relations Manager Bioniche Life Sciences Inc. Telephone: (613) 966-8058 Cell: (613) 391-2097 Jennifer.Shea@Bioniche.com
Bioniche Life Sciences Inc.CONTACT: Jennifer Shea, Corporate Communications & Investor RelationsManager of Bioniche Life Sciences Inc., +1-613-966-8058, or Cell,+1-613-391-2097, Jennifer.Shea@Bioniche.com
Web site: http://www.bioniche.com/