VANCOUVER, Oct. 28 /CNW/ - Response Biomedical Corporation (TSX: RBM,
OTCBB: RPBIF) (the "Company") today announced that it has completed an initial
closing of the financing announced on October 14, 2008 and amended on October
17, 2008, raising gross proceeds of $4.66 million. The closing involved a
brokered and non-brokered private placement of 31,084,435 units at a price of
$0.15 for each unit. Each unit consisted of one common share and one-half of
one common share purchase warrant. Each full warrant is exercisable for one
common share at a price of $0.20 per share. The warrants may be exercised for
a period of 36 months from the closing date. Subject to delivery of necessary
funds and documents, a further non-brokered financing of approximately
$340,000 is expected to close within the next few days on the same terms,
bringing the gross proceeds raised by that time to $5.0 million.
The common shares issued under the initial closing will have a hold
period under Canadian law until March 1, 2009. The hold period for the
additional common shares issued in the subsequent closing, if any, will be
four months from the date of the closing.
Net proceeds of this offering will be used for working capital purposes,
in particular toward the launch of the Flu A+B test sold by 3M Medical and the
cardiovascular test line to be marketed by Roche Diagnostics.
"This financing, coupled with the commitments of our partners puts us in
a much stronger position to take advantage of opportunities in the diagnostic
market, as our partners prepare to market our two key product candidates, Flu
A+B Test, which 3M has commenced selling this month, and NT-proBNP Test
expected to be launched by Roche Diagnostics in the first quarter of 2009,"
said S. Wayne Kay, CEO. "We are also continuing to explore new opportunities
with potential partners interested in funding further development applications
in clinical areas not covered by our current partnerships."
About Response Biomedical
Response Biomedical develops, manufactures and markets rapid on-site
diagnostic tests for use with its RAMP(R) Platform for clinical and
environmental applications. RAMP(R) represents a new paradigm in diagnostics
that provides high sensitivity and reliable information in minutes. It is
ideally suited to both point-of-care testing and laboratory use. The RAMP(R)
system consists of a Reader and single-use disposable test cartridges, and has
the potential to be adapted to more than 250 medical and non-medical tests
currently performed in laboratories. RAMP(R) clinical tests are commercially
available for the early detection of heart attack and congestive heart
In late 2006, the Company formed a strategic alliance with 3M Company to
commercialize rapid infectious disease tests worldwide and in 2008 entered
into a strategic alliance with Roche Diagnostics to commercialize rapid
cardiovascular tests worldwide.
In the non-clinical market, RAMP(R) Tests are currently provided for the
environmental detection of West Nile Virus, and Biodefense applications
including the rapid on-site detection of anthrax, smallpox, ricin and
botulinum toxin. Several other product applications are under development.
Response has achieved CE Marking and its Quality Management System is
registered to ISO 13485: 2003 and ISO 9001: 2000.
Response Biomedical is a publicly traded company, listed on the TSX under
the trading symbol "RBM" and quoted on the OTC Bulletin Board under the symbol
"RPBIF". For further information, please visit the Company's website at
This press release does not constitute an offer to purchase securities.
The securities to be offered in the private placement have not been and will
not be registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States except pursuant to an
available exemption from such registration requirements.
Statements contained in this press release relating to future results,
events or developments, including statements regarding the use of proceeds of
the offering and the Company's partnering efforts, are "forward-looking
statements" or "forward-looking information" under applicable United States
and Canadian securities laws. Forward-looking statements and information can
often be identified by the use of the words "believes," "may," "could",
"plans," "will," "estimate," "continue," "anticipates," "intends," "expects",
"goal" and similar expressions, Forward-looking statements or information are
subject to the related assumptions made by us and involve known and unknown
risks, uncertainties and other factors that may cause actual results, events
or developments to be materially different from those expressed or implied by
such statements or information.
Many of such risks, uncertainties and other factors form part of our
underlying assumptions, and include, among other things, financial risks that
would affect our operations such as our available working capital and cash
flows and whether and for how long available funds will be sufficient to fund
our operations and our ability to raise additional capital as and when needed;
our need for substantial additional funding to conduct research and
development and commercialization activities; changing facility costs and
other risks relating to our facilities expansion plans; our ability to
establish, and our dependence upon, relationships with strategic alliance
partners to develop and commercialize products; technological changes that
impact our existing products or our ability to develop and commercialize our
products; our ability to obtain and enforce timely patent and other
intellectual property protection for our technology and products; our ability
to obtain and maintain rights to technology from licensors; liability for
patent, product liability and other claims asserted against us;
commercialization limitations imposed by patents owned or controlled by third
parties; technical risk in research and development; adverse results or
unexpected delays in product development and clinical trials; our ability to
retain, and our reliance upon, third party suppliers, manufacturers,
distributors and alliance partners; our ability to attract and retain
qualified personnel; our ability to effectively and efficiently manage the
planned growth of our operations; our ability to obtain, and the timing of,
necessary regulatory approvals; our ability to profitably sell our products at
prices that would be acceptable to third-party reimbursement programs;
competition including competition from others with significantly more
resources; market acceptance of our products and the size of our markets;
changes in business strategy or development plans; changes in, or the failure
to comply with, governmental regulations; fluctuations in interest rates and
foreign exchange rates; seasonality including government budget cycles;
general economic and business conditions where we operate; and other factors
referenced in our annual report, our Annual Information Form (AIF) (Form 40-F
in the U.S.) and other filings with Canadian and United States securities
Given these uncertainties, assumptions and risks, readers are cautioned
not to place undue reliance on such forward-looking statements or information.
We disclaim any obligation to update, or to publicly announce any revisions
to, any such statements or information to reflect future results, events or
developments, except as required by law.
For further information:
For further information: Response Biomedical Contacts: Bill Wickson,
Manager, Investor Relations, Response Biomedical Corporation, Tel (604)
456-6073, Email: email@example.com