Response Biomed Corp RPBIF

pricing done

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Response Biomedical Announces Terms of Unit Offering

 /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ VANCOUVER, May 7 /CNW/ - Response Biomedical Corporation (TSX: RBM,OTCBB: RPBIF) (the "Company") announced today that it has entered into anunderwriting agreement with Haywood Securities Inc. ("Haywood") in connectionwith its previously announced marketed public offering (the "Offering") ofunits ("Units"). The Company and Haywood have agreed that the Company willissue 73,333,333 Units at a price of C$0.15 per Unit (the "Offering Price")for gross aggregate proceeds of C$11 million. Each Unit will consist of onecommon share (each a "Common Share") and one-half of one common share purchasewarrant (each a "Warrant"). Each whole Warrant will entitle the holder thereofto purchase one additional Common Share at a price of C$0.25 for a period of24 months from the closing date of the Offering. The Company has also granted to Haywood an over-allotment option topurchase an additional 11 million Units (representing 15% of the total numberof Units offered) at the Offering Price. The Units are being offered by way of a short form prospectus in each ofthe provinces and territories of Canada, other than Québec. The Offering isscheduled to close on or about May 21, 2009 subject to certain closingconditions as described in the preliminary short form prospectus dated May 5,2009 and receipt of all necessary regulatory approvals, including the approvalof the Toronto Stock Exchange ("TSX"). An amended and restated preliminary short form prospectus relating to theOffering will be filed with securities commissions or similar authorities ineach of the provinces and territories of Canada, other than Québec. Copies ofthe preliminary short form prospectus and the amended and restated preliminaryshort form prospectus may be obtained upon request and without charge fromHaywood. Copies of the preliminary short form prospectus and the amended andrestated preliminary short form prospectus may also be obtained under theCompany's profile on SEDAR (  www.sedar.com). Net proceeds of the Offering will be used primarily for general operatingexpenses and a small percentage for capital acquisitions related tomanufacturing capacity expansion to meet product demand created by ourcorporate partnerships with Roche Diagnostics, 3M Health Care and Shionogi &Co., Ltd.