Concurrently Renegotiates Agreement with Animal Genetics Firm
TORONTO, Feb. 20, 2014 /CNW/ - Microbix Biosystems Inc. (TSX: MBX), an
innovator of biological products and technologies, today announced that
it has closed on new financing for the development of LumiSort® and
also renegotiated a 2010 agreement with an animal genetics company.
Microbix confirms that the recently announced financing for the
development of its LumiSort® prototype has now closed with the
Company's existing debenture holder and that $1,500,000 in new funding
has been advanced to the Company by way of 9% secured convertible
debenture in the principal amount of $1,500,000 convertible at $0.35
The terms related to the financing include an option that, if exercised
by Microbix, would require the debenture holder to make additional
payments of up to $1.25 million based on the achievement of certain
development milestones. In exchange, the debenture holder would then
earn up to 9.25% of the gross revenue from LumiSort®. It is important
to note that this option is exercisable entirely at the discretion of
This new Lumisort® financing replaces an earlier commercial agreement
with an animal genetics company. That earlier agreement required that
partner to invest up to $2,000,000 based on the achievement of certain
milestones. In exchange, the partner would have been eligible for
11.25% of the gross revenue derived from the use of LumiSort®
As the agreement between Microbix and the animal genetics company has
been revised, the investment of the animal genetics company is capped
at its current level of $750,000 with no requirement for additional
milestone payments. In exchange, the partner's share of future gross
revenue is also capped at 2.0%, a reduction from the 4.2% of the
original agreement. Furthermore, the revisions remove a prior right of
first refusal on future Lumisort® partnering arrangements in favour of
animal genetics company.
Vaughn Embro-Pantalony, President and Chief Executive Officer said, "Our
LumiSort® financing agreement provided a unique opportunity to re-open
negotiations with our animal genetics partner. With both of these
agreements concluded, we can now consider other, more attractive,
financing alternatives to complete the necessary development of
Lumisort®. I am also pleased that we have restored our ability to
independently decide on future partnering opportunities for Lumisort®.
We are now planning to begin development work in the coming days and I
look forward to providing progress reports on our way to completion of
the Lumisort® prototype later this year."
LumiSort® is a completely new instrument-based livestock sex selection
technology that will significantly improve the yield and quality of
sexed semen, leading to higher conception rates and better economics
compared to current methods. LumiSort® employs novel and innovative
instrument designs that address fundamental problems with existing
commercial sex selection technologies and is protected by a strong
intellectual property position.
Microbix' semen sexing technology will enter the livestock artificial
insemination market estimated at $2 billion. Microbix has already
negotiated term sheet agreements for its technology with 25% of global
livestock genetics companies, agreements that will become effective
once LumiSort® is commercially available. Microbix expects LumiSort®
will become the industry standard for livestock producers.
About Microbix Biosystems
Microbix Biosystems Inc. specializes in the development of biological
solutions, including products for vaccine and diagnostics markets
worldwide. The company owns intellectual property for an approved
biological drug, a vaccine technology and an animal reproduction
technology. Established in 1988, Microbix is headquartered in Toronto.
Microbix' pipeline of innovative technologies and products includes
LumiSort® semen sexing technology for the livestock industry,
Kinlytic®, a thrombolytic drug with several approved and potential
applications including the treatment of life-threatening blood clots,
and VIRUSMAX®, a proprietary technology for increasing virus yields in
influenza vaccine manufacture.
This press release may contain 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 litigation, operations
in foreign jurisdictions, foreign currency and exchange rate risk, and
risks of raising capital on acceptable terms or at all. These
statements reflect management's current estimates, beliefs, intentions
and expectations; they are not guarantees of future performance. The
Company cautions that all forward-looking information is inherently
uncertain and the actual performance may be affected by a number of
material factors, many of which are beyond the Company's control.
Accordingly, actual future events, conditions and results may differ
materially from the estimates, beliefs, intentions and expectations
expressed or implied in the forward-looking information. All
statements are made as of the date of this news release. The Company
is under no obligation to update or alter any forward-looking
Please visit www.sedar.com for recent Microbix Biosystems Inc. filings on its pipeline products
and financial information.
SOURCE: Microbix Biosystems Inc.
For further information:
Visit www.microbix.com or contact: Vaughn C. Embro-Pantalony, CEO, (905) 361-8910 (ext. 350) or Charles Wallace, CFO (905) 361-8910 (ext. 255).