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BELLEVILLE, ON,
Sept. 23, 2014 /CNW/ - Bioniche Life
Sciences Inc. ("Bioniche" or the "Company") (TSX: BNC), a late
stage biotechnology company, has closed its previously announced
equity offering (the "Offering") of 25,070,000 units (the "Units")
priced at $0.23 per Unit for total
proceeds of $5,766,100, including the
over-allotment option, which was fully exercised by the Agents (as
defined below) concurrently with the completion of the Offering.
Each Unit consists of one common share (a "Common Share") and
one-half of a warrant (each whole warrant, a "Warrant"). Each
Warrant will entitle the holder to purchase one Common Share at a
price of $0.30 for a period of 60
months from the date hereof.
The Units were issued pursuant to an agency
agreement between the Company and Dundee Securities Ltd., as lead
agent, Clarus Securities Inc. and Euro Pacific Canada Inc.
(collectively, the "Agents") on a best efforts basis. Bloom Burton
& Co. Inc. was appointed by the Agents as a selling group
member. In connection with the Offering, the Agents received a cash
fee equal to 7% of the gross proceeds realized by the Company and
compensation options exercisable to purchase, in the aggregate,
that number of Common Shares which is equal to 7% of the number of
Units issued pursuant to the Offering at a price of $0.29 per Common Share, for a period of one year
from the date hereof. After deducting the Agents' cash fee and
other expenses, the Company's net proceeds from the Offering are
approximately $5.27 million.
The net proceeds of the Offering will be used by
the Company to complete the filing with the United States Food
& Drug Administration of a Biologics License Application
("BLA") for our lead program Mycobacterium phlei cell wall-nucleic
acid complex ("MCNA") for the treatment of patients with high grade
non-muscle invasive bladder cancer that have failed Bacillus
Calmette-Guérin ("BCG") therapy, and for general corporate
purposes.
Commenting on the funding of the Offering, Dr.
Michael Berendt, CEO & Chief
Scientist, declared: "This financing, along with our current cash
reserves, allows us to focus on our primary goal which is to file
the BLA for MCNA in the first quarter of next year. There is
a significant unmet medical need for new, non-surgical treatment
options for patients who have failed BCG treatment, and we will do
everything in our power to ensure that we advance MCNA towards
commercialization in the United
States. Concurrently, we have initiated a partnering
process and are actively engaging with interested parties who share
our excitement about the potential approval and commercialization
of MCNA in the United States and
globally."
The final short form prospectus is available 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 Life Sciences Inc. is a late clinical
stage Canadian biopharmaceutical company focused on the
licensing/acquisition, development, manufacturing, and marketing of
proprietary and innovative therapies for the global human health
market. The Company's primary goal is to develop and
commercialize products that advance human health and increase
shareholder value.
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, 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.
