BioSyntech Inc.
TSX VENTURE : BSY

BioSyntech Inc.

September 06, 2005 10:06 ET

BioSyntech Announces Closing of Private Placement

LAVAL, QUEBEC--(CCNMatthews - Sept. 6, 2005) - Further to its press release of August 24, 2005, BioSyntech, Inc. (TSX VENTURE:BSY) is pleased to announce the closing of the private placement of 7,500,000 common shares at a price of $0.80 per share by Nicholas Piramal India Limited ("NPIL").

In accordance with the agreements entered into, NPIL has nominated its Chief Scientific Officer, Dr. Somesh Sharma Ph.D., to be its representative on the Board of Directors of the Company. Commenting on this decision, Mr. Claude LeDuc said:



"We are very pleased that NPIL would designate Dr. Sharma, a
renowned scientist, as its nominee on our Board. Dr. Sharma's
many years of experience with biotech companies in North America
will be an important asset for the Company. This is evidence
of NPIL's strong interest in the development of our products
and in future cooperations based on our technological platforms."


The financing with NPIL gives us sufficient funds to reach all of our fiscal year 2006 targeted clinical trials milestones for BST-CarGel®, BST-DermOn™ and BST-InPod™. In accordance with the rules of the TSX Venture Exchange, the shares issued to NPIL will be subject to a minimum holding period of four months. NPIL's post-issue shareholding will be approximately 17% of BioSyntech's issued shares.

As part of the arrangement, NPIL has acquired exclusive rights for marketing, sales and distribution of current and future products of BioSyntech for India, Pakistan, Sri Lanka, Bangladesh, Laos, Cambodia, Vietnam and Philippines. In addition, the companies have agreed to explore opportunities to collaborate for research and development activities with respect to future products of NPIL using BioSyntech's technological platforms.

The agreements provide that for so long as NPIL shall be the registered holder of at least 5,000,000 shares of the company, the board of directors of BioSyntech shall include representatives of NPIL in proportion to its shareholding, subject to a minimum of one director. In addition, NPIL will have proportional pre-emptive rights in the event the company offers further equity securities and, until February 23d, 2006, a veto right over issuances of shares below $0.80. The agreements also contain certain rights of first refusal, piggy back rights and drag along rights in the event of a third party offer on the Company's shares. .

BioSyntech also confirms that its as received the last payment of $686 973 under the $2.5 million loan facility granted by Investissement Quebec. As consideration for this last disbursement, Investissement Quebec has received options to acquire 82,437 common shares of the company at a price of $0.80 for a period of two years. This grant is in addition to the grant of 300,000 options at a price of $1.25 which was made at the time the facility was created.

About BioSyntech - BioSyntech is a biotechnology company specializing in the discovery, development and manufacturing of innovative cost-effective and physician-friendly therapeutic thermogels for regenerative medicine and therapeutic delivery. BioSyntech's Quality Management System is registered to ISO 9001:2000 standards. BioSyntech is listed on the TSX Venture Exchange, Canada. For additional information, visit www.biosyntech.com.

About NPIL - Nicholas Piramal India Limited is one of India's largest pharmaceutical companies, with strong brand management and sales capabilities, a FDA site-approved plant for on-and-off patent APIs and Intermediates. It is a leader in arthritis therapeutic market in India. It has R&D capabilities in Basic Research, Process Innovation, Custom Chemical Synthesis, Formulations R&D, NDDS, and also has a world-class accredited Clinical Research Organisation.

With growth fuelled through a strategy of partnerships, quality acquisitions, brand building, focused selling and manufacturing, NPIL's consolidated net sales were US$ 300 million in 2004-05. NPIL has emerged among the leaders in the Indian pharma Industry with one of the widest product portfolios in India, spanning nine key therapeutic areas, including Cardio-vascular, Neuro-psychiatry, Oncology, Diabetes Management, Respiratory, Anti-infectives, Gastro-intestinals, Dermatology and NSAIDS. NPIL's exports initiative is focused on Custom Manufacturing for global innovator companies. NPIL does not participate in the early-to-market generics market. NPIL is listed in India on the Bombay Stock Exchange, National Stock Exchange and Ahmedabad Stock Exchange. For further information, visit www.nicholaspiramal.com

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • BioSyntech, Inc.
    Claude LeDuc
    President & CEO
    450-686-2437 ext. 233
    or
    Nicholas Piramal India Limited
    Vijay Sathye
    Vice President - Investor Relations and M&A
    +91-22-56637899
    Mobile: +91-9821879774