BELLEVILLE, ON, April 10, 2012 /PRNewswire/ - Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has closed a US$20 million financing from investment funds managed by U.S.-based Capital Royalty L.P. (Capital Royalty). The funds have been transferred to Bioniche, net of a $200,000 financing fee.
The financing involves a five-year term loan. The terms include a 15% interest rate, with a portion deferred and capitalized for the first three 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.
"These funds will allow the Company to accelerate a number of its late-stage research and development projects," said Mr. Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "The launch of new products from our internal development pipeline will increase revenues and profits for our Animal Health business, and this growth will enable the Company to reduce its corporate burn rate."
About Bioniche Life Sciences Inc.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. Bioniche Life Sciences Inc. has been named one of the Top 50 Best Small and Medium-Sized Employers in Canada for 2011. For more information, please visit www.Bioniche.com. About Capital Royalty L.P. Capital Royalty L.P. is a market pioneer and innovator in healthcare investing focused on intellectual property investments in approved products through structures including royalty bonds, secured debt, revenue interests and traditional royalty monetizations. Capital Royalty works directly with leading healthcare companies, research institutions and inventors to provide customized solutions to meet their unique financing needs. The value of each investment is based on the future revenue of commercialized biopharmaceutical products and medical technologies. Capital Royalty is actively making investments through its managed investment funds.