Canadian Equity Offering Bioniche Files Preliminary Prospectus for Canadian Equity Offering
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BELLEVILLE, ON, Aug. 6, 2013 /CNW/ - Bioniche Life Sciences Inc. ("Bioniche" or the "Company") (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has filed a preliminary short form prospectus in all Canadian provinces with the exception of Quebec, Prince Edward Island and Newfoundland and Labrador for an equity offering (the "Offering") of a minimum of $5 million and a maximum of $7.5 million. The Offering will be pursued on a best efforts basis pursuant to an agency agreement to be entered into between the Company and Euro Pacific Canada Inc. (the "Agent"). The Offering price will be determined by negotiation between the Company and the Agent prior to filing the final short form prospectus.
The net proceeds from the Offering will be used to support the development of the Company's Phase III bladder cancer product, Urocidin™, and for general corporate purposes. This additional funding will help to ensure that the Company is adequately capitalized as it completes the divestment of its Animal Health business unit, a process that began in May, 2013 and is being led by Evercore Partners ("Evercore"). Evercore is a U.S.-based, independent advisory firm that specializes in merger and acquisition transactions, divestitures and restructurings.
Since the announcement of the Company's intention to divest its Animal Health business, a number of parties have stepped forward expressing interest, including several major global pharmaceutical companies, and it is expected that offers will be made prior to November, 2013. The sale of Animal Health (and potentially One Health/Vaccine Manufacturing Centre (the "VMC")) is subject to shareholder approval, and a vote will be held at the November 5, 2013 annual and special meeting of shareholders of the Company (the "Meeting").
The Company believes it has an opportunity to leverage the value of its Animal Health business today and focus on the value creation potential from the commercialization of Urocidin™ and other assets going forward. The Company's current plan is to:
| 1. | Divest Animal Health, which may include the sale of the One Health division and VMC. |
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| 2. | If One Health is not sold, continue to develop the Canadian and international markets for Econiche® to attain good manufacturing practices validation for the VMC, and continue to seek buyers and/or partners for these assets. |
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| 3. | Use the proceeds from the sale of Animal Health to immediately repay debt and repayable government assistance. |
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| 4. | Complete a New Drug Submission for Urocidin™ under the Notice of Compliance with Conditions policy and obtain early market access in Canada. |
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| 5. | Obtain agreement with the U.S. Food and Drug Administration on the most efficient pathway forward for U.S. market access for Urocidin™. |
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| 6. | Initiate and complete deals with distribution partners for marketing Urocidin™ in major markets, including the U.S. and Europe. Bioniche intends to manufacture the product for all global markets and retain a manufacturer's margin. |
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| 7. | Evaluate license and development opportunities in humans for Sin Susto™ in human applications. |
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| 8. | Hire a new CEO for the Human Health business and restructure the Board of Directors with members who have expertise in human health biologic and pharmaceutical regulatory approvals and commercialization. |
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The Company will provide detailed information about its future plans, including its proposed Director candidates and details of any purchase offer for the Animal Health business, in a management information circular that will be distributed to all shareholders prior to the Meeting.