BioSyntech, Inc.
TSX : BSY

June 20, 2008 10:40 ET

BioSyntech Announces Increase to Bought Deal

LAVAL, QUEBEC--(Marketwire - June 20, 2008) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

BioSyntech, Inc. (the "Corporation") (TSX:BSY) is pleased to announce that the Corporation has reached an agreement with the underwriters to increase the size of its bought deal announced on June 16, 2008. The syndicate, led by Dundee Securities Corporation, and including Macquarie Capital Markets Canada Ltd., Versant Partners Inc. and Laurentian Bank Securities Inc. have agreed to purchase an aggregate of 11,000 Units, each comprised of $1,000 principal amount of subordinated secured convertible debentures and 2,500 warrants, representing aggregate gross proceeds of $11,000,000 to the Corporation. The Corporation has also granted to the underwriters an over-allotment option, exercisable from time to time in the 60 days following closing of the offering, to purchase up to an additional 1,650 Units to cover over-allotments, for additional gross proceeds of up to $1,650,000.

The 12.00% subordinated secured convertible debentures (the "Debentures") mature on December 31, 2009 and are convertible into common shares at any time prior to maturity at a conversion price of $0.20 per share (the "Conversion Price"). For every share issuable on conversion of the Debentures, the holder will receive 1/2 of a common share purchase warrant (the "Warrants"), being 2,500 Warrants per $1,000 principal amount of Debentures. Each whole Warrant is exercisable for a period of 5 years from the closing of the offering at a purchase price of $0.22 per share.

The offering is expected to close on or about July 4, 2008 and is subject to certain conditions, including the receipt of the acceptance of the Toronto Stock Exchange and any other required regulatory approvals.

THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY THE SECURITIES, NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements and information which are subject to material risks and uncertainties. Such statements are not historical facts and are based on the current expectations of management. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking information. These risks include, but are not limited to, those associated with our capacity to finance our activities, the adequacy, timing, and results of our clinical trials, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of the Company's products, the availability of government and insurance reimbursements for the Company's products, the strength of intellectual property, the success of research and development programs, reliance on subcontractors and key personnel, and other risks and uncertainties detailed from time-to-time in our filings with the Canadian securities commissions. There is no guarantee that the proposed financing will be completed and that the Company will be in a position to meet its obligations as they become due.

Readers should not place undue reliance on the forward-looking information, given that (i) our actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions which were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, could prove to be inaccurate. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in the Company's annual report and other documents filed from time to time with the Canadian securities commissions which are available at www.sedar.com. These statements speak only as of the date they are made, and we assume no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.

Contact Information