TORONTO, April 23, 2015 /CNW/ - Amorfix Life Sciences Ltd., a biotechnology company focused on diagnostics and therapeutics for misfolded protein diseases, in particular neurodegenerative diseases, today announced that, subject to TSX approval, it has arranged a secured bridge loan in the amount of US$40,000 (the "Bridge Loan") with four directors of the Corporation (the "Lenders"). The Bridge Loan will serve as interim financing to support the working capital requirements of the Corporation.
The Bridge Loan will accrue interest at 2% per annum and will be secured by the assets of the Corporation. The accrued interest and the principal amount will become due at the end of the term, which will end on the earlier of 3 months from closing and the date by which the Corporation has raised, cumulatively, equity capital of at least US$1,200,000. The Corporation may prepay the Bridge Loan at any time without any penalty.
As the Lenders are insiders, the Bridge Loan is a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61- 101"). The Corporation is relying on the exemptions set out in 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the transaction is not more than 25% of the Corporation's market capitalization. The Bridge Loan has been approved by the non-interested directors, who determined the Bridge Loan is in the best interests of the Corporation. The Corporation expects to close the Bridge Loan within next seven days and therefore, reports as required by MI 61-101 that anticipates that it will not have filed a material change report more than 21 days before the expected closing of the Bridge Loan as the Corporation requires the funds prior to that time period.
Amorfix Life Sciences Ltd. (TSX:AMF) is an early-stage product development company developing therapeutic antibodies and diagnostics targeting misfolded protein diseases. Amorfix utilizes its computational discovery platform, ProMIS™, to predict novel Disease Specific Epitopes (DSEs) on the molecular surface of misfolded proteins. Using this technology, Amorfix is developing novel antibody therapeutics and companion diagnostics for cancer and amyotrophic lateral sclerosis (ALS). In addition, Amorfix has developed two proprietary technologies to specifically identify very low levels of misfolded proteins in a biological sample: Epitope Protection™ and AMFIA™, an ultra-sensitive dual-bead immunoassay. Use of these technologies has generated a cerebrospinal fluid (CSF) screening test for both Alzheimer's disease (AD) and mild cognitive impairment (MCI), and an ultrasensitive method for detecting the hallmark of AD, aggregated beta-Amyloid, in brain tissue, CSF and blood from animal models of AD. For more information about Amorfix, visit www.amorfix.com.
Certain statements in this press release constitute "forward looking" statements within the meaning of applicable Canadian securities legislation, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this press release, such statements may use such words as "plan", "expect", "intend", "may", "will", "believe", "anticipate" and other similar terminology. These statements include, but are not limited to, the expectation that the Corporation will be successful in closing the Bridge Loan and any subsequent financings. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. The forward-looking statements involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, the Corporation's ability to obtain additional financing on acceptable terms or at all, changes in equity markets; uncertainties relating to the availability and costs of financing needed for operations, the ability of the Corporation to meet its obligations as they become due, and other risks set out in the Corporation's management's discussion and analysis filed on SEDAR. The Corporation undertakes no obligation to update publicly or revise any forward looking information, whether a result of new information, future results or otherwise, except as required by law.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release may contain certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Amorfix Life Sciences Ltd.
For further information: Dr. Robert Gundel, President and Chief Executive Officer, Amorfix Life Sciences Ltd., Tel: (416) 847-6957, Fax: (416) 847-6899, [email protected]; Warren Whitehead, Chief Financial Officer, Amorfix Life Sciences Ltd., Tel: (416) 644-7358, Fax: (416) 847-6899, [email protected]