MONTREAL, QUEBEC -- (Marketwired) -- 07/05/13 -- Paladin Labs Inc. (TSX: PLB) ("Paladin") and Bioniche Life Sciences Inc. (TSX: BNC)(ASX: BNC) ("Bioniche") today announced the official closing of the various agreements associated with a comprehensive strategic collaboration to refinance and increase Bioniche's debt, provide new equity, and enter into the first licensing deal for Bioniche's Phase III bladder cancer product - Urocidin. This collaboration was originally announced on June 5, 2013.
The closing of these deals has resulted in the issuance of a further $5 million in debt financing to Bioniche from Paladin.
As partial consideration for the entering into of the amended loan transaction, Bioniche granted Paladin Warrants to acquire Common Shares ("Warrants"), such Warrants to expire on the earlier of two years from the complete repayment by Bioniche of the loan or May 31, 2019. The following number of Warrants were issued to Paladin, subject to the terms noted below:
-- 750,000 Warrants at an exercise price of $0.31-- 500,000 Warrants at an exercise price of $0.50-- 250,000 Warrants at an exercise price of $0.70-- 250,000 Warrants at an exercise price of $0.85-- 250,000 Warrants at an exercise price of $1.00-- If the loan has not been repaid by Bioniche by January 1, 2014, 500,000 Warrants will be exercisable at an exercise price equal to the 5-day volume weighted average share price calculated as at December 31, 2013-- If the loan has not been repaid by Bioniche by April 1, 2014, 500,000 Warrants will be exercisable at an exercise price equal to the 5-day volume weighted average share price calculated as at March 31, 2014
Bioniche is not required to seek shareholder approval in connection with the issuance of the Warrants to Paladin.
Urocidin is a formulation of MCC, a sterile mycobacterial cell wall-DNA complex composition that has a dual mode of action: immune stimulation and direct anticancer activity. Urocidin is formulated for the treatment of bladder cancer, where it is administered by trans-urethral catheter directly into the bladder. The agent is then able to directly interact with the cells of the immune system and bladder cancer cells.
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at www.paladinlabs.com.
About Bioniche Life Sciences Inc.
Bioniche Life Sciences Inc. 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 employs more than 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and One Health. The Company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value. For more information, please visit www.Bioniche.com.