HALIFAX, Aug. 29 /CNW/ - MedMira Inc., ("MedMira") (TSX Venture: MIR,
NASDAQ: MMIRF), a developer and marketer of rapid diagnostics, and Morningside
Venture (IV) Investments Limited ("Morningside"), a member of the global
private equity and venture capital group, the Morningside group, jointly
announced today that they have closed $650,000 (Canadian dollars) in
convertible debenture financing from Morningside to MedMira, that was
announced on August 15, 2008.
"We're very enthusiastic about MedMira's US expansion plans and are
pleased to provide the financial support necessary to capitalize on these
critical growth opportunities," said George Chang, chief financial officer of
Morningside Asia. "This investment and our continuing support of MedMira
reflect our belief in the in vitro diagnostics sector as a tremendous growth
opportunity. We are confident that MedMira's commitment to advanced rapid
diagnostics will lead to success."
Under the terms of the agreement, Morningside acquired a four year
convertible debenture (secured) that is convertible into common shares of
MedMira at a price of $0.15 per common share in the first two years from the
date of the issuance of the debenture and $0.165 in year three and $0.1815 in
year four and secured by a security interest in the patent rights and
technology related to the Multiplo line of products and a security interest in
the STEP UP Technology. Morningside also acquired a share purchase warrant,
exercisable for 4,333,333 common shares of MedMira at a price of $0.15 per
common share until August 28, 2010. Morningside owns 10,833,333 common shares
of MedMira and if the convertible debenture was converted into common shares
and the share purchase warrant was fully exercised, Morningside would be an
18.13% shareholder of MedMira. The convertible debenture and share purchase
warrant and the common shares issuable upon the due exercise of the share
purchase warrant and upon the due conversion of the convertible debenture are
subject to a four month hold period that expires on December 29, 2008.
"Morningside's further investment in MedMira demonstrates its confidence
in our vision and our market opportunity," said Hermes Chan, President and CEO
of MedMira. "We are eager to put this new capital infusion to work in bringing
our new STD line of rapid tests to market and increasing US market share
through advancements in our Reveal rapid HIV test."
This transaction is subject to the final approval of the TSX Venture
Exchange. Morningside acquired the securities for investment purposes only and
has no current intent of acquiring any further securities of MedMira other
than those pursuant to the exercise of the share purchase warrant or pursuant
to the conversion of the convertible debenture.
About Morningside Group
Morningside group is an international investment group founded in 1986 by
the Chan family of Hong Kong. The Chan family founded the Hang Lung Group
www.hanglung.com, one of Hong Kong's largest property development and
investment companies, in Hong Kong in 1960. Morningside group has investments
in North America, Europe, across Asia-Pacific, and since 1992, in Mainland
For more information http://www.morningside.com
For copies of the early warning report in connection with this financing
transaction, please contact Morningside's representative at the contact
information noted below.
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(R), MiraWell(R), MiraCare(TM) and Multiplo(TM) brands in global
markets. MedMira's rapid 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. 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.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this statement.
For further information:
For further information: MedMira: Dr. James Smith, Investor Relations &
Corporate Affairs, (902) 450-1588, email@example.com; Morningside: Louise
Garbarino, 377 97-97-47-37