- $3 million in preferred shares converting at $1.45 per common share -
BELLEVILLE, ON, June 6 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC), a
research-based, technology-driven Canadian biopharmaceutical company, today
announced that one of its major shareholders - the Solidarity Fund QFL - is
converting $3 million of its $12 million of Series 2 preferred shares to
common shares at a conversion price of $1.45 per common share. This represents
25% of the Fund's position in Bioniche Life Sciences Inc.
When the accreted interest of 6% per year is added to the conversion, the
total number of common shares issued to the Solidarity Fund QFL is 2,388,323.
Additionally, the Solidarity Fund QFL decided as of April 15, 2007 to
suspend the exercise of its right to nominate a Director on the Board of
Directors of Bioniche Life Sciences Inc. Their Director nominee remains on the
Bioniche Board in his personal capacity.
The initial investment in Bioniche Life Sciences Inc. was made in
November, 2004, with the Solidarity Fund QFL investing $10 million and the
Bio-Food Investment Fund investing $2 million, both in Series 2 preferred
shares. The Solidarity Fund QFL has since acquired the Bio-Food Investment
Fund's participation. The remainder of the Fund's Series 2 preferred shares
plus accreted interest can be converted at $2.50 and $3.75, as set out in the
articles of amendment respecting the preferred shares.
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 products for human and animal
health markets worldwide. The fully-integrated company employs approximately
185 skilled personnel and has three operating divisions: Human Health, Animal
Health, and Food Safety. The Company's primary goal is to develop proprietary
cancer therapies supported by revenues from marketed products in human and
animal health. 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 annual reporting.
For further information:
For further information: Jennifer Shea, Corporate Communications &
Investor Relations Manager, Bioniche Life Sciences Inc., Telephone: (613)
966-8058 ext. 1250, Cell: (613) 391-2097, Jennifer.Shea@Bioniche.com