Microbix' CEO Sells Shares to Invest in China Vaccine Joint Venture
TORONTO, Jan. 6 /CNW/ - Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing novel biological technologies for human healthcare and livestock management, in addition to a core business of virology products, today reported that William J. Gastle, Chairman and Chief Executive Officer, sold 250,700 of Microbix common shares at $0.405. The full proceeds of Mr. Gastle's sale of Microbix stock was re-invested in Crucible International Biotechnologies Corp., Microbix' majority owned subsidiary that is investing directly in the influenza manufacturing joint venture in China. The transaction was part of the recent financing for Crucible.
In December, Microbix completed the private placement financing of Crucible, which was over-subscribed, attracting worldwide investors and company management. Microbix owns approximately 80% of Crucible. The financing gives Crucible a valuation of $14 million.
"It was important to demonstrate my confidence in the Joint Venture's success to other Crucible investors and to shareholders of Microbix. I am pleased that other Microbix directors and management have also invested directly in Crucible."
The establishment of Crucible and the successful start-up financing is a major milestone for the Hunan joint venture and for Microbix and its shareholders. Hunan and Crucible are now moving forward to form the Joint Venture Company which will build and operate Asia's largest vaccine facility which will be based in Changsha and will be 50% owned by Hunan and Crucible. For more information on the Hunan/Microbix joint venture visit www.microbix.com or view this news release on financing: http://www.newswire.ca/en/releases/archive/December2010/02/c9812.html.
About Microbix Biosystems
Microbix Biosystems Inc. specializes in the development of the most advanced vaccine production technology and markets virology and biological products worldwide. Microbix, in partnership with the Hunan government in China, is building Asia's largest and most advanced vaccine facility. In addition, The Company has intellectual property in a large market biotherapeutic drug, a vaccine technology and an animal reproduction technology. Microbix supplies customers in the U.S. Europe, and Asia. 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 including the risks associated with development projects, operations in Foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all. These forward-looking statements represent the Companies' judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.For further information:
Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.