Bioniche Closes C$17.5 Million Equity Financing


    Proceeds will support advancement of Phase III clinical trials in
    bladder cancer and registration of the E. coli O157:H7 cattle vaccine

    BELLEVILLE, ON, March 13 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC),
a research-based, technology-driven Canadian biopharmaceutical company, is
pleased to announce that it has closed its previously announced Offering of
units, raising gross proceeds of C$17.5 million.
    A syndicate of underwriters led by Haywood Securities Inc. and including
Desjardins Securities Inc. sold the full base Offering and also elected to
immediately exercise part of the over-allotment option, resulting in a total
offering of 14,583,333 units at a price of C$1.20 per unit. Each unit consists
of one common share in the capital of Bioniche Life Sciences Inc. and one-half
of a common share purchase warrant. Each whole warrant will entitle the holder
to purchase one additional common share until March 13, 2009 at a price of
C $1.40 per share.
    The underwriters retain an over-allotment option to purchase up to a
further 750,000 units until April 12, 2007 at a price of C$1.20 per unit.
    The Company intends to use approximately $10 million of the proceeds to
continue funding its Phase III trials of Mycobacterial Cell Wall-DNA Complex
(MCC) in the treatment of non muscle-invasive bladder cancer while seeking
strategic collaborations to fully fund such trials (the Offering's proceeds
will not be sufficient to complete these trials). Approximately $500,000 will
be used to further the registration of the E. coli O157:H7 cattle vaccine and
the balance for the continued development of the Company's other products and
technologies, as well as for working capital and general corporate purposes.
    The issuance of the securities being offered has not been and will not be
registered under the United Stated Securities Act of 1933, as amended, or any
state security laws, and thus may not be offered or sold within the United
States unless registered under the United States Securities Act of 1933 and
applicable state securities laws, or an exemption from such registration is
available. This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States or to U.S.

    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 business units: 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

    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.
    %SEDAR: 00013159EF

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,

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