Bioniche Files Preliminary Prospectus for Canadian Equity Offering

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BELLEVILLE, ON, Aug. 6, 2013 /CNW/ - Bioniche Life Sciences Inc. ("Bioniche" or the "Company") (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has filed a preliminary short form prospectus in all Canadian provinces with the exception of Quebec, Prince Edward Island and Newfoundland and Labrador for an equity offering (the "Offering") of a minimum of $5 million and a maximum of $7.5 million. The Offering will be pursued on a best efforts basis pursuant to an agency agreement to be entered into between the Company and Euro Pacific Canada Inc. (the "Agent"). The Offering price will be determined by negotiation between the Company and the Agent prior to filing the final short form prospectus.

The net proceeds from the Offering will be used to support the development of the Company's Phase III bladder cancer product, Urocidin™, and for general corporate purposes. This additional funding will help to ensure that the Company is adequately capitalized as it completes the divestment of its Animal Health business unit, a process that began in May, 2013 and is being led by Evercore Partners ("Evercore"). Evercore is a U.S.-based, independent advisory firm that specializes in merger and acquisition transactions, divestitures and restructurings.

Since the announcement of the Company's intention to divest its Animal Health business, a number of parties have stepped forward expressing interest, including several major global pharmaceutical companies, and it is expected that offers will be made prior to November, 2013. The sale of Animal Health (and potentially One Health/Vaccine Manufacturing Centre (the "VMC")) is subject to shareholder approval, and a vote will be held at the November 5, 2013 annual and special meeting of shareholders of the Company (the "Meeting").

The Company believes it has an opportunity to leverage the value of its Animal Health business today and focus on the value creation potential from the commercialization of Urocidin™ and other assets going forward. The Company's current plan is to:

1.	Divest Animal Health, which may include the sale of the One Health division and VMC.
2.	If One Health is not sold, continue to develop the Canadian and international markets for Econiche® to attain good manufacturing practices validation for the VMC, and continue to seek buyers and/or partners for these assets.
3.	Use the proceeds from the sale of Animal Health to immediately repay debt and repayable government assistance.
4.	Complete a New Drug Submission for Urocidin™ under the Notice of Compliance with Conditions policy and obtain early market access in Canada.
5.	Obtain agreement with the U.S. Food and Drug Administration on the most efficient pathway forward for U.S. market access for Urocidin™.
6.	Initiate and complete deals with distribution partners for marketing Urocidin™ in major markets, including the U.S. and Europe. Bioniche intends to manufacture the product for all global markets and retain a manufacturer's margin.
7.	Evaluate license and development opportunities in humans for Sin Susto™ in human applications.
8.	Hire a new CEO for the Human Health business and restructure the Board of Directors with members who have expertise in human health biologic and pharmaceutical regulatory approvals and commercialization.

The Company will provide detailed information about its future plans, including its proposed Director candidates and details of any purchase offer for the Animal Health business, in a management information circular that will be distributed to all shareholders prior to the Meeting.

The preliminary short form prospectus is available for viewing and downloading at www.sedar.com, at www.Bioniche.com, or by contacting the Company.

The securities offered under the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any securities laws of any state of the United States, and may not be offered or sold directly or indirectly in the United States or to, or for the account or benefit of, a "U.S. Person" (as defined in Regulation S under the U.S. Securities Act) absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable securities laws of any state of the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or to, or for the account or benefit of, a "U.S. Person," nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Bioniche

Bioniche is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary and innovative products for human and animal health markets worldwide. The fully-integrated Company has three operating divisions: Human Health, Animal Health, and Food Safety.

For more information, please visit www.Bioniche.com.

Except for historical information, this news release contains forward-looking statements, including, without limitation, the intended use of proceeds from the Offering and the Company's future plans, including, but not limited to, the timing for such plans, that reflect the Company's current expectations regarding future events. These forward-looking statements involve risk and uncertainties, which may include, 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. Bioniche does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable laws.

SOURCE: Bioniche Life Sciences Inc.

Jennifer Shea, Vice-President, Communications, Investor & Government Relations
Bioniche Life Sciences Inc.
Telephone: [phone]; from Australia: 0011 1 613-966-8058
Cell: [phone]; from Australia: 0011 1 613-391-2097
[email protected]