SemBioSys announces $6,500,000 bought deal equity financing


    TSX symbol: SBS

    CALGARY, Oct. 19 /CNW/ - SemBioSys Genetics Inc. (the "Company")
(TSX:SBS), a biotechnology company developing a portfolio of therapeutic
proteins for metabolic and cardiovascular diseases, today announced that it
has entered an agreement to issue 2,500,000 units of the Company ("Units") at
price of $2.60 per Unit, on a bought deal private placement basis, to a
syndicate of underwriters led by Acumen Capital Finance Partners Limited and
including PI Financial Corp., for total gross proceeds to the Company of
$6,500,000. The Company has granted the underwriters an over-allotment option
to purchase up to an additional 375,000 Units which, if exercised in full,
would raise the total gross proceeds to the Company to $7,475,000. The
offering is expected to close on or about November 14, 2007, subject to the
receipt of all requisite regulatory approvals and the approval of the Toronto
Stock Exchange.
    Each Unit will consist of one common share of the Company (a "Common
Share") and one-half of one Common Share purchase warrant. Each whole warrant
will entitle the holder to purchase one additional Common Share at a price of
$3.45 at any time on or before 5:00 p.m. (Mountain Time) on the second
anniversary of the closing date of the offering. In the event that after the
first anniversary of the closing date of the offering the 20-day average
volume weighted trading price of the Company's Common Share exceeds $4.00, the
Company will have the right to provide notice to the holders of the warrants
that the warrants will expire 30 days after such notice unless exercised by
the holders.
    The net proceeds of the offering will be used primarily for the continued
advancement of plant manufactured insulin and the cardiovascular therapeutic,
Apo AI, in pre-clinical and clinical development.
    This press release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The units,
common shares and warrants offered have not been and will not be registered
under the United States Securities Act of 1993 (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within the United
States or to U.S. persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from registration is

    About SemBioSys Genetics Inc. (

    Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company
developing protein-based pharmaceuticals for metabolic and cardiovascular
diseases. The Company's lead pharmaceutical candidates, produced in the plant
host safflower, are recombinant human insulin to serve the rapidly expanding
global diabetes market and Apo AI, a next generation cardiovascular drug. In
addition to its pharmaceutical products, SemBioSys is developing a series of
non-pharmaceutical products addressing human topical, nutritional oils and
animal health markets.

    This press release contains certain forward-looking statements,
including, without limitation, statements containing the words "believe",
"may", "plan", "will", "estimate", "continue", "anticipate", "intend",
"expect" and other similar expressions which constitute "forward-looking
information" within the meaning of applicable Canadian securities laws.
Forward-looking statements reflect the Company's current expectation and
assumptions, and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those anticipated. These
forward-looking statements involve risks and uncertainties including, but 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 filings with the Canadian securities
regulatory authorities which filings can be found at Given
these risks and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking statements either
as a result of new information, future events or otherwise, except as required
by applicable Canadian securities laws.

For further information:

For further information: SemBioSys Genetics Inc., Mr. Andrew Baum,
President and Chief Executive Officer, Phone: (403) 717-8767, Fax: (403)
250-3886, E-mail:, Internet:; Investor
Relations, Ross Marshall, The Equicom Group Inc., Phone: (416) 815-0700 (Ext.
238), Fax: (416) 815-0080, E-mail:

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SemBioSys Genetics Inc.

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