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BioSyntech Gives Notice to Debentureholders and Announces Resignation of Board Member

^{Published on 2009-06-11 14:13:08, Last Modified on 2009-06-11 14:14:24 - Market Wire}
 

 LAVAL, QC, June 11 /CNW/ - BioSyntech, Inc. (TSX: BSY) (the Company) gave notice to its debentureholders that it exercised its right to make the interest payment of $745,800 due on June 30, 2009 by issuing common shares. The number of common shares to be issued on June 30, 2009 will be equal to the amount of the interests, divided by 95% of the volume weighted average trading price per common share for the five trading days immediately preceding. On July 15, 2008, the Company closed a bought deal financing of 11,000 subordinated secured convertible debentures units of the Company, each comprised of $1,000 principal amount of subordinated secured convertible debentures and 2,500 warrants, representing gross aggregate proceeds of $11,000,000 to the Company. On July 18, 2008, the underwriters exercised part of an over-allotment option to purchase an additional 1,550 Units for gross proceeds of $1,550,000. The debentures mature on December 31, 2009 and bear interest to an annual rate of 12.0% payable semi-annually, not in advance, on June 30 and December 31 of each year. Change in Board of Directors BioSyntech also announced today that Mr. Nick Losey has tendered his resignation as member of the Board. This resignation is subsequent to Mr. Losey's resignation from Highland Capital Management. Under the terms of an underwriting agreement signed in connection with the July 2008 debenture financing, Highland Capital Management has the right to nominate one member to the Board of the Company. No replacement has been appointed at this time. About BioSyntech BioSyntech is a medical device company specialized in the development, manufacturing and commercialization of advanced biotherapeutic thermogels for regenerative medicine (tissue repair) and therapeutic delivery. BioSyntech's platform technology is a family of hydrogels called BST-Gel(R), some of which are liquid at low temperature and solid at human body temperature. These gels can be injected or applied to a specific local site and offer beneficial properties for the local repair of damaged tissue such as cartilage, bone and chronic wounds and provide the benefit of avoiding invasive surgery. For additional information, visit [ www.biosyntech.com ]. Forward-Looking Statements This press release contains forward-looking statements and information which are subject to material risks and uncertainties. Such statements are not historical facts and are based on the current expectations of management. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking information. These risks include, but are not limited to, those associated with our capacity to finance our activities, the adequacy, timing, and results of our clinical trials, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of the Company's products, the availability of government and insurance reimbursements for the Company's products, the strength of intellectual property, the success of research and development programs, reliance on subcontractors and key personnel, and other risks and uncertainties detailed from time-to-time in our filings with the Canadian securities commissions. Readers should not place undue reliance on the forward-looking information, given that (i) our actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions which were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, could prove to be inaccurate. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in the Company's annual report and other documents filed from time to time with the Canadian securities commissions which are available at [ www.sedar.com ]. These statements speak only as of the date they are made, and we assume no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law. %SEDAR: 00020217EF 

For further information: James Smith, The Equicom Group, (416) 815-0700 x229, [ Jsmith@equicomgroup.com ]