ProMetic Receives $3.2 Million Via Loan Repayment
March 11 2014 - 6:30AM
Marketwired
ProMetic Receives $3.2 Million Via Loan Repayment
LAVAL, QUEBEC--(Marketwired - Mar 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.
Pierre LaurinPresident and CEOProMetic Life Sciences
Inc.p.laurin@prometic.com+1.450.781.0115Frederic DumaisDirector,
Communications andInvestor RelationsProMetic Life
Sciencesf.dumais@prometic.com+1.450.781.0115