Health & Fitness
Health and Fitness
Health and Fitness
Mon, February 20, 2012
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ProMetic Improves its Short Term Liquidity by $5.0 Million
February 17, 2012 12:55 ET
ProMetic Improves its Short Term Liquidity by $5.0 Million
LAVAL, QUEBEC, CANADA--(Marketwire - Feb. 17, 2012) -ProMetic Life Sciences Inc. (TSX:PLI) ("ProMetic") announced today that it has restructured the repayment of $4 million worth of secured loans previously provided by some of its long term stakeholders ("Stakeholders"), effectively rescheduling the repayment of $4.0 million worth of secured debt from July 1, 2012 to July 1, 2013. In addition to this extension, one of the Stakeholders has further invested $1 million in equity in ProMetic.
"This precedes a series of upcoming commercial transactions which will significantly improve our liquidity requirements as well as our balance sheet", mentioned Bruce Pritchard, Chief Financial Officer of ProMetic.
"We appreciate the confidence shown by these investors in our ability to execute on our business initiatives, especially from the secured lender who has further invested an additional $1.0 million. To date, they have together invested over $12 million in ProMetic and Newco. The combination of these loan extensions and further cash injection clearly demonstrate that these Stakeholders' interest is aligned with those of the Company and its shareholders", said Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic Life Sciences Inc. "This effectively provides us with the opportunity to repay these loans from anticipated revenues generated from commercial transactions", added Mr. Laurin.
As consideration for the above-mentioned debt restructuring and investment, the Stakeholders will collectively receive 12,930,909 shares in ProMetic's share capital at an approximate average share price of $0.115, representing 3.26% of ProMetic's outstanding shares or 3.16% on a fully diluted basis. The stakeholders shall also collectively receive 2,857,140 warrants, which if exercised could, collectively with the above-mentioned shares, represent 3.98% of ProMetic's outstanding shares or 3.83% on a fully diluted basis. The Toronto Stock Exchange has given conditional approval to this issuance of shares and granting of warrants.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. ("ProMetic") ([ www.prometic.com ]) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand™ technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Laval (Canada), ProMetic has R&D facilities in the UK, the U.S. and Canada, manufacturing facilities in the UK and business development activities in the U.S., Europe, Asia and in the Middle-East.
Forward Looking Statements
This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 27 of ProMetic's Annual Information Form for the year ended December 31, 2010, under the heading "Risk Factors". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless stated otherwise.
