BELLEVILLE, ON, June 6 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. , a research-based, technology-driven Canadian biopharmaceutical company, today announced that one of its major shareholders - the Solidarity Fund QFL - is converting $3 million of its $12 million of Series 2 preferred shares to common shares at a conversion price of $1.45 per common share. This represents 25% of the Fund's position in Bioniche Life Sciences Inc.
When the accreted interest of 6% per year is added to the conversion, the total number of common shares issued to the Solidarity Fund QFL is 2,388,323.
Additionally, the Solidarity Fund QFL decided as of April 15, 2007 to suspend the exercise of its right to nominate a Director on the Board of Directors of Bioniche Life Sciences Inc. Their Director nominee remains on the Bioniche Board in his personal capacity.
The initial investment in Bioniche Life Sciences Inc. was made in November, 2004, with the Solidarity Fund QFL investing $10 million and the Bio-Food Investment Fund investing $2 million, both in Series 2 preferred shares. The Solidarity Fund QFL has since acquired the Bio-Food Investment Fund's participation. The remainder of the Fund's Series 2 preferred shares plus accreted interest can be converted at $2.50 and $3.75, as set out in the articles of amendment respecting the preferred shares.
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 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.
Bioniche Life Sciences Inc.CONTACT: Jennifer Shea, Corporate Communications & Investor RelationsManager, Bioniche Life Sciences Inc., Telephone: (613) 966-8058 ext. 1250,Cell: (613) 391-2097, Jennifer.Shea@Bioniche.com