LAVAL, QUEBEC--(CCNMatthews - April 17, 2006) - BioSyntech, Inc. (“BioSyntech” or the “Company”) (TSX VENTURE:BSY) announced today that it has increased the size of its previously announced private placement to $21,700,000, representing an aggregate of 51,666,666 units, at a price of $0.42 per unit, to accommodate the subscription of two strategic investors. This amount includes the units issued upon the exercise of the Over-Allotment Option by the agents and those reserved for exercise by Nicholas Piramal India Limited pursuant to its pre-emptive right. A second closing took place on Thursday, April 13, 2006, which involved the issuance of 19,055,000 units, for gross proceeds of $8,003,100. A third and final closing may take place on or before April 28, 2006 to permit the exercise by Nicholas Piramal India Limited of its aforementioned pre-emptive right.
The proceeds of the offering will be used to fund the clinical trials for the Company’s three leading products as well as for general working capital purposes.
Desjardins Securities Inc. and Dundee Securities Corporation acted as the agents for the Company.
The securities issued pursuant to this private placement are subject to a four-month hold period. Following this second closing, the Company has a total of 88,272,650 common shares issued and outstanding.
About BioSyntech
BioSyntech is a biotechnology company specializing in the discovery, development and manufacturing of innovative cost-effective and physician-friendly biotherapeutic thermogels for regenerative medicine and therapeutic delivery. BioSyntech’s Quality Management System is registered to ISO 9001:2000 standard.
The units being offered have not been, and will not be, registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the units may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.