TORONTO, Feb. 9 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. TSX:MBX) announced today it has completed a Cdn $1-million financing agreement that will be used to operate a state-of-the-art facility in Toronto for the production of urokinase.
The financing is in the form of a 9% convertible debenture, in a non-arms length transaction with an existing shareholder. The principal amount of the debenture is convertible into common shares at $ 0.90 per share for a period of 10 years. The existing debentures of December 2002 and March 2004 have been conformed to a new debenture at the 9% interest rate and expire at the same time as the new debenture.
As previously announced, Microbix acquired all the assets and use of the GMP manufacturing plant from Genpharm Inc., an affiliate of Merck KgaA. Microbix is and will be negotiating for rights to new patented uses of the drug and plans to supply the product to companies with established franchises in target markets.
“This is an important step for the Company,” said President and CEO William J. Gastle. “What this does is put Microbix in a dominant position to produce and supply urokinase in the near term, and it also gives us the flexibility to enter into licensing agreements with partners that have specialized franchises in specific markets.”
Under licensing agreements, Microbix would be the exclusive manufacturer of the active pharmaceutical ingredient for the drug. The Company’s partners would market and sell the product. Once clinical trials and regulatory approvals have been gained, Microbix and its partners would participate in the revenues and market exclusivity for several years resulting from patent protection.
“Microbix wants to build a market franchise in these specialized product uses for urokinase,” said Gastle. “We believe there is excellent market potential for manufacturing urokinase products that meet specific clinical needs.”
Microbix specializes in developing proprietary biological technologies and commercializing them through global partners. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Established in 1988, Microbix is headquartered in Toronto.
This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. For instance, negotiations for new proprietary uses may proceed slowly or not at all, may result in products that can not be commercialized and sales of urokinase products may not materialize. These forward-looking statements represent the Company’s judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.
Microbix Biosystems Inc.
CONTACT: visit www.microbix.com or contact William J. Gastle, Presidentand CEO, Microbix Biosystems Inc., (416) 234-1624 x 230
