Paladin and Bioniche officially close debt refinancing and Urocidin licensing deals

8 July 2013

Canadian companies Bioniche Life Sciences (TSX: BNC) and Paladin Labs (TSX: PLB) said on Friday (July 5) that they had officially closed the various previously-announced agreements associated with a comprehensive strategic collaboration to refinance and increase Bioniche's debt, provide new equity, and enter into the first licensing deal for Bioniche's Phase III bladder cancer product Urocidin (mycobacterial cell wall-DNA complex).

The closing of these deals has resulted in the issue of a further $5 million in debt financing to Bioniche from Paladin. As partial consideration for the entering into of the amended loan transaction, Bioniche granted Paladin warrants to acquire common shares, such warrants to expire on the earlier of two years from the complete repayment by Bioniche of the loan or May 31, 2019.

On June 5, Bioniche and Paladin announced a comprehensive strategic collaboration to refinance and increase Bioniche's debt, provide new equity, and enter into the first licensing deal for Bioniche's Urocidin.

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