BioSyntech Inc.
TSX VENTURE : BSY

BioSyntech Inc.

March 31, 2006 09:29 ET

BioSyntech, Inc. Announces First Closing of its Private Placement for an Amount of $10 Million

LAVAL, QUEBEC--(CCNMatthews - March 31, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

BioSyntech, Inc. ("BioSyntech" or the "Company") (TSX VENTURE:BSY) announced today a first closing of its private placement involving the issuance of 23,810,000 units at a price of $0.42 per unit for gross proceeds of $10,000,200. Each unit consists of one common share of the Company and one half of one warrant. Each warrant entitles the holder to purchase, for a period of three years, one common share at a price of $0.65 per share.

The Company expects a second closing to take place on or before April 28, 2006, for an additional amount of $5 million. The proceeds of the offering will be used to fund the clinical trials for the Company's three leading products as well as for general working capital purposes.

Desjardins Securities Inc. and Dundee Securities Corporation acted as the agents for the Company.

Finally, the Company announced that its continuation under the Canada Business Corporations Act (CBCA) became effective on March 29, 2006.

About BioSyntech

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

The units being offered have not been, and will not be, registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the units may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.


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Contact Information

  • BioSyntech, Inc.
    Claude LeDuc
    President and CEO
    (450) 686-2437, ext. 233
    or
    The Equicom Group Inc.
    Francois Kalos
    (514) 844-6054
    fkalos@equicomgroup.com