HALIFAX, June 6, 2012 /CNW/ - MedMira Inc., (MedMira) (TSXV: MIR), a developer of rapid diagnostic technology and solutions, announced today that it has entered into an agreement with Andurja Beteiligungen AG (Andurja), a Swiss company based in Zug, Switzerland, for a CAD$6.0 million equity investment to be used in financial operations and further advancing global business development, sales, and marketing initiatives.
"Andurja continues to demonstrate its commitment to MedMira and shares our confidence in the Company's growth strategy. This is a significant cash infusion and will be instrumental in taking a number of MedMira's current business development, sales, and marketing programs to the next level," said Hermes Chan, chief executive officer, MedMira Inc. "Previous investments have enabled the Company to achieve success in a number of key areas, including the establishment of a strategic partnership program which extends our business development reach around the globe. Additionally, MedMira continues to raise its profile within organizations such as the Bill & Melinda Gates Foundation and various United Nations agencies, and is increasing awareness of its technology and products in niche markets, like the defence sector. This latest investment from Andurja will make it possible to bolster our activities in these areas as well as initiate market development in other high growth diagnostic sectors."
Andurja, the controlling and majority shareholder of MedMira's strategic business development partner Vitest AG, made previous investments in MedMira, including CAD$2.0 million in 2009, CAD$1.0 million in 2010, CAD$1.5 million in 2011, and CAD$1.0 million in January 2012.
"Over the past three years, Andurja investment has supported MedMira in establishing a number of realistic and successful programs which now form a solid foundation for further business development and marketing initiatives," said Urs Meile, chairman, Andurja Beteiligungen AG. "MedMira has honed its patented technology and successfully applied it to produce a number of high quality premium diagnostics products. With excellent products, and more in the pipeline, an international network of strategic partners, ongoing global brand awareness campaigns, and an increasing position within the defence market segment, we believe this level of investment will enable to the Company to further its plan to achieve success and shareholder value."
Under the terms of the deal Andurja will acquire 120,000,000 equity units at $0.05 per unit. Each equity unit consists of one common share and one common share purchase warrant and is subject to a four month hold period ending October 12, 2012. Each full warrant entitles Andurja to purchase one common share of MedMira at $0.10 per share exercisable over four years. Under the terms of this transaction, Andurja will increase its ownership of MedMira common shares from 40.4% to 58.6% and this could increase to 68.3% if all warrants related to this transaction are exercised.
This agreement has received conditional approval and is subject to final approval of the TSX Venture Exchange.
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics and technologies. The Company's tests provide hospitals, labs, clinics and individuals with reliable, rapid diagnosis for diseases such as HIV and hepatitis C in just three minutes. The company's tests are sold under the Reveal®, Multiplo™ and Miriad brands in global markets. MedMira's rapid flow-through HIV test is the only one in the world to achieve regulatory approvals in Canada, the United States, China and the European Union. MedMira's corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada. For more information visit MedMira's website at www.medmira.com.
This news release contains forward-looking statements, which involve risk and uncertainties and reflect the Company's current expectation regarding future events including statements regarding possible future growth and new business opportunities. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.
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.
For further information:
Andrea Young, Corporate Communications
Email: [email protected]