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BELLEVILLE, ON, Sept. 26, 2013 /CNW/ - Bioniche Life Sciences Inc.
("Bioniche" or the "Company") (TSX: BNC) (ASX: BNC), a research-based,
technology-driven Canadian biopharmaceutical company, today announced
that it has closed a Canadian equity offering of 33,808,620 Units
priced at $0.29 per Unit for total proceeds of $9,804,500. Each Unit
includes one Common Share and one-half of a Warrant exercisable at
$0.40 for two years.
The Units were issued pursuant to an agency agreement between the
Company and Euro Pacific Canada Inc. (the "Agent") and the Agent
appointed Bloom Burton & Co. as a special selling group member for the
purpose of arranging the purchase of Units under the Offering. The
Company has agreed to pay the Agent a fee equal to 7% of the gross
proceeds ($0.0203 per Unit) plus broker warrants to purchase, in the
aggregate, that number of Common Shares which is equal to 7% of the
number of Units issued pursuant to the financing at the offering price
for two years. After deducting the Agent's cash fee and other expenses,
the net proceeds to the Company are approximately $9 million.
These funds will be used to support the development of the Company's
Phase III bladder cancer product, Urocidin™, and for general corporate purposes. This additional funding will help
to ensure that the Company is adequately capitalized as it completes
the divestment of its Animal Health business unit, a process that began
in May, 2013.
As part of the debt refinancing and equity deal completed with Paladin
Labs Inc. (Paladin) in July, 2013, Paladin has invested $500,000 in
Bioniche as part of this equity financing. Further, with the closing of
this financing, Paladin will release a further $3 million loan to the
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 and innovative
products for human and animal health markets worldwide. The
fully-integrated company employs more than 200 skilled personnel and
has three operating divisions: Human Health, Animal Health, and Food
Safety. The Company's primary goal is to develop and commercialize
products that advance human or animal health and increase shareholder
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
SOURCE: Bioniche Life Sciences Inc.
For further information:
Jennifer Shea, Vice-President, Communications, Investor & Government Relations
Bioniche Life Sciences Inc.
Telephone: (613) 966-8058; from Australia: 0011 1 613-966-8058
Cell: (613) 391-2097; from Australia: 0011 1 613-391-2097