Bioniche Life Sciences Secures $20 Million
Bioniche Life Sciences Inc. recently announced it has accepted an offer of a $20 million financing from investment funds managed by US-based Capital Royalty L.P. Capital Royalty has agreed to provide a 5-year term loan to Bioniche Life Sciences Inc. to facilitate the company’s corporate growth and support its capital requirements. The terms include a 15% interest rate, with a portion deferred and capitalized for the first 3 years of the term of the loan. An additional royalty interest of 2% will be paid to Capital Royalty on all product sales revenues for the term of the loan. Principal repayments of eight equal installments begin in June, 2015. The transaction is expected to close April 2012.
“We are very pleased that Capital Royalty has expressed its confidence in the company through this strategic investment,” said Mr. Graeme McRae, Chairman, President, and CEO of Bioniche Life Sciences Inc. “Through the due diligence process, Capital Royalty has demonstrated an excellent understanding of our business and commercialization program. It is particularly gratifying to be able to receive such an investment with no dilution of our equity shareholders.”
“We welcome the opportunity to develop and fund customized financing structures for innovative life science companies like Bioniche,” said Charles Tate, Chairman & Founder of Capital Royalty L.P. “The company has a diverse base of existing revenue in addition to exciting opportunities for future growth.”
Further information about this transaction will be made available via the company’s filings on www.SEDAR.com and www.asx.com.au.
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 Food Safety. 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.
Total Page Views: 959
