Ondine Biomedical Inc.

May 12, 2011 05:00 ET

Ondine Announces Debt Financing



May 12, 2011

Ondine Announces Debt Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2011) - Ondine Biomedical Inc. (the "Company" or "Ondine")
(TSX:OBP)(AIM:OBP), a medical technology company developing photodisinfection based products, today announced
that it has entered into a loan agreement with Carolyn Cross, Chairman, CEO and a shareholder of the Company,
pursuant to which Ms. Cross advanced the Company C$1,500,000 (the "Loan"), demonstrating her continued support
of the Company.

The Loan is due on October 1, 2011 and is secured by a first charge on the proceeds of any future financing
transaction. The Loan is interest free until the due date, but thereafter, the principal amount will accrue
interest at a rate of 5% per annum payable monthly. The proceeds of the Loan will be used for the continued
research and development of new products based on the Company's photodisinfection technology, including the
Company's product for the reduction of ventilator-associated pneumonia (VAP) and the Company's MRSAid(TM)
product for the decolonization of pathogenic bacteria, such as methicillin-resistant Staphylococcus aureus
(MRSA), in the nose; for working capital; and for general corporate purposes.

The loan agreement entered into by the Company and Ms. Cross constitutes a related party transaction for the
purposes of the AIM Rules for Companies (the "Related Party Transaction"). Accordingly, the directors of the
Company (excluding Ms. Cross), having consulted with the Company's nominated adviser, consider the terms of the
Related Party Transaction to be fair and reasonable insofar as the Company's shareholders are concerned.

The material change report in respect of this transaction was not filed at least 21 days in advance of the
closing of the Loan as the Company was in need of the funds. The Company considers the shortened timeframe to
be reasonable under these circumstances.

About Ondine Biomedical Inc.

Ondine is developing non-antibiotic therapies for the treatment of a broad spectrum of bacterial, fungal and
viral infections. The Company is focused on developing leading edge products utilizing its patented light-
activated technology, primarily for the healthcare-associated infection (HAI) market. Photodisinfection
provides broad-spectrum antimicrobial efficacy without encouraging the formation and spread of antibiotic
resistance. The Company is based in Vancouver, British Columbia, Canada, with a research and development
laboratory in Bothell, Washington, USA. For additional information, please visit the Company's website at:

Forward-Looking Statements:

Certain statements contained in this release containing words like "believe", "intend", "may", "expect" and
other similar expressions, are forward-looking statements that involve a number of risks and uncertainties.
Factors that could cause actual results to differ materially from those projected in the Company's forward-
looking statements include the following: market acceptance of our technologies and products; our ability to
obtain financing; our financial and technical resources relative to those of our competitors; our ability to
keep up with rapid technological change; government regulation of our technologies; our ability to enforce our
intellectual property rights and protect our proprietary technologies; the ability to obtain and develop
partnership opportunities; the timing of commercial product launches; the ability to achieve key technical
milestones in key products and other risk factors identified from time to time in the Company's public filings.


Ondine Biomedical Inc.
Carolyn Cross
Chairman and CEO


Canaccord Genuity Limited, Nominated Adviser
Mark Williams/Bhavesh Patel
+4420 7050 6500

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this

Contact Information

  • Ondine Biomedical Inc.