Bioniche Files Final Short-Form Prospectus for Offering of Units


    - $16 million of units offered at a price of $1.20 per unit -

    BELLEVILLE, ON, March 2 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC), a
research-based, technology-driven Canadian biopharmaceutical company, today
announced that it has filed a final short-form prospectus with each of the
provincial securities regulatory authorities of Canada with respect to an
offering of $16 million of units at a price of $1.20 per unit. Each unit
consists of one common share in the capital of Bioniche and one-half of a
common share purchase warrant. Each whole warrant will entitle the holder to
purchase one additional common share of the Company at a price of $1.40 per
share for a period of two years from the closing of the offering. The offering
is being made pursuant to an underwriting agreement between the Company and
Haywood Securities Inc. and Desjardins Securities Inc.
    The Company has granted to the underwriters an over-allotment option to
acquire an additional 15% of the Offering for a period of 30 days following
closing, for market stabilization purposes and to cover over-allotments.
    In addition to a commission of 7%, the underwriters will also receive
compensation warrants to purchase, for a period of two years at the Offering
prices, 7% of the units, shares, or warrants issued pursuant to this Offering
and the over-allotment option, if exercised.
    It is expected that approximately 13.33 million common shares will be
issued at the closing of the Offering. If the over-allotment option is
exercised in full, this would increase to approximately 15.33 million common
    The estimated net proceeds to the Company from the Offering will be
approximately $14,180,000, after deducting the Underwriters' Fee and the
estimated expenses of the Offering ($16,412,000 if the over-allotment option
is exercised). The Company intends to use approximately $10 million of the
estimated net proceeds for the advancement of its Phase III trials with
Mycobacterial Cell Wall-DNA Complex (MCC) in the treatment of non
muscle-invasive bladder cancer while the Company seeks a strategic
collaboration to fully fund such trials (as the proceeds will not be
sufficient to complete the trials), approximately $500,000 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 and for
working capital and general corporate purposes.
    The offering is subject to receipt of applicable regulatory and stock
exchange approvals. 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. persons.

    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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