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BELLEVILLE, ON, Sept. 23, 2014 /CNW/ - Bioniche Life Sciences Inc.
("Bioniche" or the "Company") (TSX: BNC), a late stage biotechnology
company, has closed its previously announced equity offering (the
"Offering") of 25,070,000 units (the "Units") priced at $0.23 per Unit
for total proceeds of $5,766,100, including the over-allotment option,
which was fully exercised by the Agents (as defined below) concurrently
with the completion of the Offering. Each Unit consists of one common
share (a "Common Share") and one-half of a warrant (each whole warrant,
a "Warrant"). Each Warrant will entitle the holder to purchase one
Common Share at a price of $0.30 for a period of 60 months from the
The Units were issued pursuant to an agency agreement between the
Company and Dundee Securities Ltd., as lead agent, Clarus Securities
Inc. and Euro Pacific Canada Inc. (collectively, the "Agents") on a
best efforts basis. Bloom Burton & Co. Inc. was appointed by the Agents
as a selling group member. In connection with the Offering, the Agents
received a cash fee equal to 7% of the gross proceeds realized by the
Company and compensation options exercisable to purchase, in the
aggregate, that number of Common Shares which is equal to 7% of the
number of Units issued pursuant to the Offering at a price of $0.29 per
Common Share, for a period of one year from the date hereof. After
deducting the Agents' cash fee and other expenses, the Company's net
proceeds from the Offering are approximately $5.27 million.
The net proceeds of the Offering will be used by the Company to complete
the filing with the United States Food & Drug Administration of a
Biologics License Application ("BLA") for our lead program
Mycobacterium phlei cell wall-nucleic acid complex ("MCNA") for the
treatment of patients with high grade non-muscle invasive bladder
cancer that have failed Bacillus Calmette-Guérin ("BCG") therapy, and
for general corporate purposes.
Commenting on the funding of the Offering, Dr. Michael Berendt, CEO &
Chief Scientist, declared: "This financing, along with our current cash
reserves, allows us to focus on our primary goal which is to file the
BLA for MCNA in the first quarter of next year. There is a significant
unmet medical need for new, non-surgical treatment options for patients
who have failed BCG treatment, and we will do everything in our power
to ensure that we advance MCNA towards commercialization in the United
States. Concurrently, we have initiated a partnering process and are
actively engaging with interested parties who share our excitement
about the potential approval and commercialization of MCNA in the
United States and globally."
The final short form prospectus is available at www.sedar.com, at www.Bioniche.com, or by contacting the Company.
The securities offered under the Offering have not been, and will not
be, registered under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act") or any securities laws of any state of the
United States, and may not be offered or sold directly or indirectly in
the United States or to, or for the account or benefit of, a "U.S.
Person" (as defined in Regulation S under the U.S. Securities Act)
absent registration or any applicable exemption from the registration
requirements of the U.S. Securities Act and applicable securities laws
of any state of the United States. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy
securities in the United States or to, or for the account or benefit
of, a "U.S. Person", nor shall there be any sale of these securities in
any jurisdiction in which such offer, solicitation or sale would be
Bioniche Life Sciences Inc. is a late clinical stage Canadian
biopharmaceutical company focused on the licensing/acquisition,
development, manufacturing, and marketing of proprietary and innovative
therapies for the global human health market. The Company's primary
goal is to develop and commercialize products that advance human health
and increase shareholder value.
For more information, please visit www.Bioniche.com.
Except for historical information, this news release contains
forward-looking statements, including, without limitation, the intended
use of proceeds from the Offering, that reflect the Company's current
expectations regarding future events. These forward-looking statements
involve risk and uncertainties, which may include, 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 does not undertake to update any
forward-looking statement or forward-looking information that is
included herein, except in accordance with applicable laws.
SOURCE: Bioniche Life Sciences Inc.
For further information:
Donald Olds, Chief Operating Officer
Bioniche Life Sciences Inc.
Telephone: (613) 966-8058