BELLEVILLE, ON, June 12, 2013 /PRNewswire/ - Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today issued an open letter to all shareholders from Founder, President & CEO, Graeme McRae:
Dear Fellow Shareholders,
By now you have seen the many press releases accompanying the requisition by Bill Wells and Greg Gubitz for a shareholders' meeting to make changes to the Board of Directors (Board) of Bioniche. I am writing to shareholders to set out the rationale for our Board's response to Messrs. Wells and Gubitz.
Wells and Gubitz, through an intermediary, approached our Chairman Jim Rae in August, 2012 on an unsolicited basis with a proposal to acquire a controlling interest in our Animal Health business. They were backed by a major U.S. private equity firm and laid out a plan to use our Animal Health business as a consolidation vehicle, touting their success at Biovail as something that could be duplicated with Bioniche Animal Health. They assured us that they would never proceed on a hostile basis.In the interest of maximizing shareholder value, we were open to discussions with them, signed a non-disclosure and standstill agreement, and shared strategic and highly confidential information. In the end, we believed that the deal terms proposed were not in the best interests of all shareholders. Having had access to confidential information from which they learned the true value and potential of Bioniche, we were shocked to see that they acquired a stake in the Company from which to try and control the Board, contrary to their assurances to us. More importantly, their public attacks are now jeopardizing some very important initiatives underway to maximize the Company's potential for the benefit of all shareholders.