Annidis Corporation Announces Closing of its Promissory Note Financing and Completion of International Distribution Agreement
26 Jun, 2013, 07:00 ET
OTTAWA, June 26, 2013 /CNW/ - Annidis Corporation (TSX Venture: RHA), creator of the Annidis RHA™, today announced that it closed its $3,000,000 promissory note financing ("Financing") announced on November 29, 2012. The Company also announced its subsidiary completed a distribution agreement with Yimai Technology International Company Limited (YIMAI), a Hong Kong company which through its affiliates distributes ophthalmology products in China.
YIMAI subscribed for $1,000,000 of the promissory note offering ("Notes") which along with $333,313 of additional commitments from third parties completes the offering. Each lender received one common share purchase warrant ("Warrant") for every one dollar of principal loaned to Annidis. Each Warrant may be exercised at a price of $0.40 per common share for a period of three years from the date of issuance, subject to early termination or expiry provisions. The Notes are secured by a general security agreement over the assets, including all intellectual property, of Annidis Health Systems Corp. In accordance with applicable securities laws, the securities issued in connection with the Financing are subject to a hold period of four months plus one day from the date on which they are issued. The proceeds from the Financing will be used by Annidis for general working capital purposes including accelerating manufacturing.
Annidis Health Systems Corp., a wholly-owned subsidiary of Annidis, also entered into a distribution agreement with YIMAI to provide them exclusive distribution rights of Annidis products in the People's Republic of China, including Hong Kong and Macau. YIMAI, through its affiliate Shenzhen New Industries Material Of Ophthalmology Co. Ltd., markets and distributes ophthalmology products in China through its 13 nationwide offices. The term of the agreement is six years following the date of regulatory approval in China, and is on customary arm's length terms.
"YIMAI's knowledge and experience in China and its financial commitment to the Company provides an excellent opportunity for growth in one of the world's largest and fastest growing markets," said Gerald Slemko, CEO of Annidis. "Completing this agreement ahead of the third quarter as originally anticipated shows YIMAI's interest in our products and willingness to work together."
"This agreement allows us to bring our customers world-leading technology so they can provide their patients with world-class care," said Jinsong Zhang, CEO of YIMAI. "The RHA™ and MSI technology will allow our doctors to diagnose previously undetectable signs of eye disease and preserve their patient's eye-sight for years to come."
Pursuant to the Financing, Luc Lacombe (2650 Queensview Drive, Suite 245, Ottawa, Ontario, K2B 8H6), through a holding company, made a loan of $1,017,805 principal amount to Annidis and acquired ownership of 1,017,805 Warrants. Accordingly, Mr. Lacombe now has beneficial ownership of a combination of common shares and convertible securities representing an aggregate of 8,750,774 common shares of Annidis (or approximately 12.7% of Annidis' outstanding common shares on a partially diluted basis after completion of the Financing). Mr. Lacombe acquired the Warrants by way of private placement for investment purposes and may, from time to time, acquire additional securities of Annidis or dispose of such securities as he may deem appropriate.
About Annidis Corporation
Annidis (TSX-V: RHA) has developed and is marketing a new imaging platform technology based on Multi-Spectral Imaging (MSI). This new technology is opening a new frontier in disease identification and its management. The Annidis MSI technology allows eye-care professionals to view non-invasively the deepest areas of the eye aiding eye care professionals in the early identification and treatment of debilitating eye diseases. The Company's existing RHA 2020-U Gold, used by eye care professionals as a broad based tool for detecting early-onset of eye related diseases such as Dry AMD, has a potential market of over 20,000 clinics in North America. The RHA Platinum MD will further strengthen the value proposition allowing doctors to visualize choroidal and retinal vasculature non-invasively. The RHA Platinum MD has global market potential of more than 100,000 Ophthalmologists.
This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope", and "continue" (or the negative thereof), and words and expressions of similar import are intended to identify forward-looking statements. Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in the Company's Annual Information Form and other such filings with Canadian securities regulatory authorities, such as the applicability of patents and proprietary technology; possible patent ligation; regulatory approval of products in development; changes in government regulation or regulatory approval processes; government and third party reimbursement; dependence on strategic partnerships; intensifying competition; rapid technological change in the industry; anticipated future losses; the ability to access capital; and the ability to attract and retain key personnel. All forward-looking information presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Company does not undertake to update any forward-looking statements; such statements speak only as of the date made.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Annidis Corporation
For further information:
Gerald Slemko, CEO
(519) 858-1582 ext. 239
Email: [email protected]
James Binckly, Investor Relations
(416) 815-0700 ext. 228
Email: [email protected]
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