LAVAL, QUEBEC--(Marketwire - March 5, 2013) - ProMetic Life Sciences Inc. (TSX:PLI) ("ProMetic" or the "Corporation") announced today that it has finalized the repayment terms of $4 million worth of secured loans previously provided by some of its long term stakeholders ("Stakeholders"), effectively rescheduling the repayment of $4.0 million worth of secured debt from July 1, 2013 to July 1, 2014.
The Corporation also recognises the continued support of The Isle of Man's Department of Economic Development ("DED"), towards the growth of ProMetic's operations on the Isle of Man; DED has expanded its offer of financial support to ProMetic BioSciences Limited. The exact terms are still to be finalised, however DED agreed that the outstanding repayable working capital grant of approximately $550 000 would no longer be repayable in February 2013, but rather out of future capital grant contributions made by DED to ProMetic BioSciences Limited for qualifying projects.
The Corporation also recently amended the terms of its $800 000 loan agreement with Conister Bank which was originally due for payment in full in December 2012. The loan will now be repaid during the course of 2013, in 12 equal monthly instalments. The loan remains unsecured and continues to bear interest at a rate of 10% per annum.
"These loan extensions and working capital grant conversions clearly demonstrate, once again, the confidence shown by these investors and lenders in our ability to execute on our business plan. This significantly reduces pressure on our short term liquidity requirements and positively impacts our ability to continue to improve our balance sheet", said Mr. Bruce Pritchard, Chief Financial Officer of ProMetic.
As consideration for the above-mentioned $4 million worth of secured loans restructuring, the Stakeholders collectively received 1,043,476 shares in ProMetic's share capital at an approximate average share price of $0.46, representing 0.21% of ProMetic's outstanding shares or 0.19% on a fully diluted basis. The stakeholders also collectively received 754,715 warrants with a strike price of $0.53, which if exercised could, collectively with the above-mentioned shares, represent 0.16% of ProMetic's outstanding shares or 0.13% on a fully diluted basis. The Toronto Stock Exchange has given conditional approval to this issuance of shares and granting of warrants.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (www.prometic.com) is a global biopharmaceutical company specializing in the design of small molecules that mimic unique and specific interactions between proteins, research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand™ technology. This technology is used in large-scale purification of biologics, drug development, proteomics and the elimination of pathogens. ProMetic is also active in developing its own novel therapeutic products targeting unmet medical needs in the field of fibrosis, anemia, neutropenia, cancer and autoimmune diseases/inflammation as well as certain nephropathies 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, 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 24 of ProMetic's Annual Information Form for the year ended December 31, 2011, 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.