New OnSite Lab Investment Enables MedMira to Expand Sales Programs and Manufacturing Capacity Ahead of Planned Product Launches
HALIFAX, Sept. 20, 2013 /CNW/ - MedMira Inc., (MedMira) (TSXV: MIR), a developer of rapid diagnostic technology and solutions, today announced a CAD $6.105 million (CHF 5.5 million) equity investment from OnSite Lab Holding AG (OnSite Lab). OnSite Lab is the Company's largest and controlling shareholder. MedMira will use the investment to initiate significant sales and marketing programs, in the United States and global markets, in advance of the launch of new rapid tests anticipated to begin in 2014.
Strengthening MedMira's sales and marketing efforts will include the hiring of key personnel with in-depth medical device and biotechnology sales and business development experience, as well as the establishment of regional offices to service strategic markets, customers, and partners. MedMira will initially focus much of its sales and marketing expansion efforts in the US, where it plans to launch new rapid diagnostics, from both the Reveal and Multiplo ranges, to the market during 2014-15. Additionally, the funds will be used to fully implement automated manufacturing ensuring that MedMira can keep up with rising customer demand for quality rapid diagnostics.
Under the terms of the deal Onsite Lab will acquire 122,100,000 equity units at $0.05 per unit. Each equity unit consists of one common share and one common share purchase warrant and is subject to a four month hold period ending February 1, 2014. Each full warrant entitles Onsite Lab to purchase one common share of MedMira at $0.10 per share exercisable over four years. Under the terms of this transaction, Onsite Lab will increase its ownership of MedMira common shares from 58.6% to 68.5%. This could increase to 74.5% if all warrants related to this transaction are exercised. Onsite Lab made previous investments in MedMira totaling CAD $11.5 million. This investment is subject to final approval by the TSX Venture Exchange.
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics. The Company's tests provide hospitals, labs, clinics and individuals with reliable, rapid diagnosis for diseases such as HIV and hepatitis C in just three minutes. The Company's tests are sold under the Reveal®, Multiplo™ and Miriad brands in global markets. MedMira's rapid flow-through HIV test is the only one in the world to achieve regulatory approvals in Canada, the United States, China and the European Union. MedMira's corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada. For more information visit MedMira's website at www.medmira.com.
This news release contains forward-looking statements, which involve risk and uncertainties and reflect the Company's current expectation regarding future events including statements regarding possible approval and launch of new products, future growth, and new business opportunities. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE MEDMIRA INC.For further information:
Andrea Young, Corporate Communications