BELLEVILLE, ON,
April 3, 2014 /PRNewswire/ - Bioniche
Life Sciences Inc. (TSX: BNC) today announced that Institutional
Shareholder Services (ISS) has recommended that shareholders vote
FOR the special resolution pertaining to the sale of all of
the Corporation's Animal Health business to Vétoquinol SA, to be
considered at the upcoming Special Meeting of Shareholders:
Monday, April 14,
2014
9:00 .m. EST
Norton Rose Fulbright
Canada
Board Rooms D, E, and F
Royal Bank Plaza, South Tower, Suite 3800
200 Bay Street
Toronto, Ontario
ISS is an independent proxy advisory firm that,
among other services, provides proxy voting recommendations to
pension funds, investment managers, mutual funds, and other
institutional shareholders. In its analysis, ISS said:
"The asset sale transaction makes strategic
sense as it enables the company to realize value for some of the
assets. While market reaction is negative, the price is a premium
of $0.10 to the share price on the
unaffected day (30%). No shareholder distribution is planned. The
company has stated that it is facing severe financial stress. There
are no significant governance concerns and shareholder approval of
this resolution is warranted."
The Board of Directors and management of
Bioniche Life Sciences Inc. also believe it is in the best
interests of the Company for shareholders to approve the proposed
sale transaction to Vétoquinol for the following reasons:
- A comprehensive sale process was conducted that exposed the
asset to significant players in the industry;
- The Vétoquinol offer is the best offer received and represents
market value for this asset;
- The Vétoquinol offer excludes certain assets that
Bioniche will be seeking to monetize in separate transactions;
- The surviving Bioniche company will be focused on Human Health
with a reasonable cash runway and excellent prospects to benefit
from strong equity capital market support for focused human
biotechnology companies; and
- The approval of this sale transaction represents the most
viable strategy for Bioniche's shareholders to ensure preservation
of their equity interest absent a reasonable alternative for
repayment of the Paladin/Endo loan facility that falls due on
July 1, 2014.
Individuals holding Common Shares of Bioniche
Life Sciences Inc. as of Tuesday, March 11,
2014 will be eligible to vote at the meeting. A management
information circular (the "Circular") containing a detailed
description of the transaction, pro forma financial statements, use
of proceeds, and the meeting agenda has been mailed to
shareholders. Shareholders are encouraged to vote prior to the
deadline of 9:00 a.m. EST on
Thursday, April 10, 2014. Voting
instructions are contained in the Circular, which is also available
on www.SEDAR.com and on the Company's website
(www.Bioniche.com).
The Company has retained Laurel Hill Advisory
Group ("Laurel Hill") to act as proxy solicitation agent and to
respond to inquiries from Bioniche shareholders. Laurel Hill may be contacted by telephone at
1-877-452-7184 toll-free in North
America and at 416-304-0211 for collect calls outside of
North America, or by email at
assistance@laurelhill.com.
About Bioniche Life Sciences Inc.
Bioniche Life Sciences Inc. is a clinical stage
Canadian biopharmaceutical company focused on the discovery,
development, manufacturing, and marketing of proprietary and
innovative therapies for the global human health market. The
Company's primary goal is to develop and commercialize products
that advance human health and increase shareholder value. For more
information, please visit www.Bioniche.com.
Except for historical information, this news
release may contain forward-looking statements that reflect the
Company's current expectation regarding future events. These
forward-looking statements involve risk and uncertainties, which
may cause, but are not limited to, changing market conditions, the
successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive
products and pricing, new product development, uncertainties
related to the regulatory approval process, and other risks
detailed from time to time in the Company's ongoing quarterly and
annual reporting.
SOURCE Bioniche Life Sciences Inc.