Med BioGene Inc.

Med BioGene Inc.

December 29, 2009 13:35 ET

Med BioGene Announces Closing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 29, 2009) -


Med BioGene Inc. (TSX VENTURE:MBI) today announced the closing of its previously announced non-brokered private placement through the issuance of 5,832,000 units for gross proceeds of approximately $700,000.

Each unit was issued at a price of $0.12 and consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share at a price of $0.18 for a period of 24 months, subject to the acceleration by MBI of the expiration of the warrants if the closing price of the common shares on the TSX Venture Exchange is greater than $0.30 for twenty or more consecutive trading days.

The private placement is subject to customary conditions, including final acceptance by the TSX Venture Exchange. MBI will use the proceeds of the private placement for the development and commercialization of LungExpress Dx™ and for general corporate purposes.

LungExpress Dx is a test for non-small-cell lung cancer that uses MBI's proprietary 15-gene signature to improve upon staging for identifying those patients who, following surgical removal of their tumor, are at a higher and lower risk of mortality. The original study presented at the 2008 Annual Meeting of the American Society of Clinical Oncology involving tumour specimens collected prospectively from patients participating in an adjuvant chemotherapy clinical trial showed that those patients classified by LungExpress Dx as higher risk significantly benefited from chemotherapy, and those classified as lower risk did not benefit, and may have experienced a detrimental effect, from chemotherapy. The use of LungExpress Dx is expected to result in better-informed and personalized treatment decisions to assist in selecting patients for chemotherapy.

MBI paid a 7% selling commission and issued compensation options to acquire that number of MBI common shares equal to 7% of the units sold pursuant to the private placement, other than in respect of 500,000 units.

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based personalized clinical laboratory diagnostic tests. MBI is committed to advancing personalized medicine by commercializing tests that provide clinically relevant information to improve patient treatment and reduce health care costs. For more information, please visit

Certain statements in this press release contain forward-looking information and statements ("forward-looking statements") under applicable Canadian and United States securities legislation. Words such as "anticipates", "believes", "estimates", "expects", "intends", "may", "plans", "projects", "will", "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements include, but are not limited to, that with respect to future profits, future product revenues, future operations and plans, the use of proceeds from financings, the timing of clinical trials and the completion date for clinical trials and the prospects for negotiating partnerships or collaborations and their timing. These forward-looking statements are only a prediction based upon MBI's current expectations, and actual events or results may differ materially. MBI may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on uncertain assumptions that could cause MBI's actual results and the timing of events to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. MBI's forward-looking statements do not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments that MBI may make. All forward-looking statements are qualified in their entirety by this cautionary statement and MBI undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date of this press release, other than as required by applicable law.

This press release is intended for distribution outside the United States only and is not intended for distribution to United States newswire services or dissemination in the United States. The securities offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, United States persons absent United States registration or an applicable exemption from the United States registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of MBI in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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