BELLEVILLE, ON, April 10, 2012 /CNW/ - Bioniche Life Sciences Inc. (TSX:
BNC) (ASX: BNC), a research-based, technology-driven Canadian
biopharmaceutical company, today announced that it has closed a US$20
million financing from investment funds managed by U.S.-based Capital
Royalty L.P. (Capital Royalty). The funds have been transferred to
Bioniche, net of a $200,000 financing fee.
The financing involves a five-year term loan. The terms include a 15%
interest rate, with a portion deferred and capitalized for the first
three years of the term of the loan. An additional royalty interest of
2% will be paid to Capital Royalty on all product sales revenues for
the term of the loan. Principal repayments of eight equal installments
begin in June, 2015.
"These funds will allow the Company to accelerate a number of its
late-stage research and development projects," said Mr. Graeme McRae,
Chairman, President & CEO of Bioniche Life Sciences Inc. "The launch of
new products from our internal development pipeline will increase
revenues and profits for our Animal Health business, and this growth
will enable the Company to reduce its corporate burn rate."
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
Bioniche Life Sciences Inc. has been named one of the Top 50 Best Small
and Medium-Sized Employers in Canada for 2011. For more information,
please visit www.Bioniche.com.
About Capital Royalty L.P.
Capital Royalty L.P. is a market pioneer and innovator in healthcare
investing focused on intellectual property investments in approved
products through structures including royalty bonds, secured debt,
revenue interests and traditional royalty monetizations. Capital
Royalty works directly with leading healthcare companies, research
institutions and inventors to provide customized solutions to meet
their unique financing needs. The value of each investment is based on
the future revenue of commercialized biopharmaceutical products and
medical technologies. Capital Royalty is actively making investments
through its managed investment funds.
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