LAVAL, QUEBEC--(Marketwired - March 11, 2014) - ProMetic Life Sciences Inc. (TSX:PLI) (OTCQX:PFSCF), ("ProMetic" or the "Corporation") announced today that it has received approximately $3.2 million via the repayment of the amended and restated loan entered into in March, 2010 by ProMetic and InvHealth Holding Inc. ("Invhealth"), a corporation wholly-owned and controlled by Mr. Pierre Laurin, President and Chief Executing Officer of ProMetic (the "Loan").
The Loan was repaid prior to its March, 2016 deadline following discussions initiated by ProMetic's Board of Directors, which were led by ProMetic's Chairman of the Board, Mr. Kym Anthony. The combination of the existence of legal conditions for early repayment of the Loan as well as the opportunity for the Corporation to access non-dilutive capital to further advance its orphan drug pipeline in the clinics led to the mutual decision of the parties to repay said Loan at this time.
"We are pleased that InvHealth has agreed to proactively respect ProMetic's request for early repayment of the Loan. The shareholders had approved the term extension of the loan at the last annual meeting of the shareholders in May, 2013 in order to enable its full reimbursement at a strategic time in the future. We believe that time is today considering the tactical uses envisaged for these funds", stated Mr. Kym Anthony, Chairman of the Board of Directors of ProMetic.
"The loan repayment provides ProMetic with timely additional financial resources as the Corporation advances its ambitious rare diseases and orphan drugs programs", mentioned Mr. Pierre Laurin, President of Invhealth and ProMetic's President and Chief Executing Officer. "I would like to thank the Board and the shareholders for their strategic vision regarding the entering into, the extension and repayment of the Loan", added Mr. Laurin.
The $3.2 million cash receipt in ProMetic covers the complete repayment of all capital and accrued interest owed to ProMetic by Invhealth resulting from a loan agreement originally entered into by Invhealth and ProMetic in 2008, amended and restated in March, 2010 (approved in May 2010 by ProMetic's shareholders); said Loan's term was extended by 3 years with shareholder approval in May, 2013. The Loan was originally contracted by the parties in 2008 in order to reimburse Prometic for its payment as guarantor of amounts owed by Invhealth to a third party lender, Camofi Master LDC. Invhealth had contracted a loan from Camofi on December 4, 2007 to, inter alia, finance the purchase of 1,724,138 shares of ProMetic issued by way of private placement at a premium to market share price. More information regarding said loan's history/background can be seen in the Corporation's 2013 annual documents filed on SEDAR.
The funds used to repay the Loan and pay relevant expenses were generated by the disposition by InvHealth of approximately 2.05 million shares of ProMetic at $1.61 for total gross proceeds of approximately $3.3 million. The shares sold consisted of shares originally pledged to ProMetic by Invhealth as guarantee for the Loan, the whole pursuant to instructions and authorisation by ProMetic's Board of Directors.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (www.prometic.com) is a long established biopharmaceutical company with globally recognized expertise in bioseparation, plasma-derived therapeutics and small-molecule drug development. ProMetic offers its state of the art technologies for large-scale purification of biologics, drug development, proteomics and the elimination of pathogens to a growing base of industry leaders and uses its own affinity technology that provides for highly efficient extraction and purification of therapeutic proteins from human plasma in order to develop best-in-class therapeutics and orphan drugs. ProMetic is also active in developing its own novel small-molecule therapeutic products targeting unmet medical needs in the field of fibrosis, cancer and autoimmune diseases/inflammation. Headquartered in Laval (Canada), ProMetic has R&D facilities in the UK, the U.S. and Canada, manufacturing facilities in the UK and business development activities in the U.S., Europe and Asia.
Forward Looking Statements
This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 26 of ProMetic's Annual Information Form for the year ended December 31, 2012, under the heading "Risk and Uncertainties related to ProMetic's business". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless indicated otherwise.