MedMira Closes $6.5M in Funding from Morningside
17 Marzo 2006 - 7:42AM
PR Newswire (US)
New Institutional Equity Funding Brings Strategic Partner and Fuels
Growth Plans for MedMira HALIFAX, March 17 /PRNewswire-FirstCall/
-- MedMira Inc., ("MedMira") (TSX Venture: MIR, NASDAQ: MMIRF) the
global market leader in premium rapid diagnostic solutions and
Morningside Venture (IV) Investments Limited ("Morningside"), a
member of the global private equity and venture capital group, the
Morningside group, jointly announced today that they have closed
$6.5 million (Canadian dollars) in equity financing from
Morningside to MedMira, that was announced on March 6, 2006. "With
the terms of the deal now finalized, we look forward to working
with MedMira's executive team on the strategic growth plans for the
company," said George Chang, chief financial officer of Morningside
Asia. "We are confident that MedMira can capitalize on the
potential for their existing line of rapid tests while continuing
to develop new innovative diagnostic solutions for the global
healthcare market." Under the terms of the agreement Morningside
acquired 10,833,333 equity units at $0.60 per unit, for total net
proceeds of $5.6 million in cash after retirement of a USD$775,000
promissory note. Each equity unit consists of 1 common share and
one half of a common share purchase warrant, for a total of
10,833,333 common shares and 5,416,667 common share purchase
warrants being issued. Each warrant entitles Morningside to
purchase one common share of MedMira at $0.69 per share for a two
year period, ending on March 16, 2008. Following this private
placement transaction, Morningside owns 10,833,333 common shares of
MedMira and warrants to acquire 5,416,667 common shares of MedMira.
As a result, Morningside has become an 18.8% Shareholder of
MedMira. Both the common shares and the common share purchase
warrants are subject to a four month hold period that expires on
July 16, 2006. Morningside has the right to nominate one director
to the Board of MedMira. This transaction is subject to the final
approval of the TSX Venture Exchange. Morningside acquired the
securities for investment purposes only and has no current intent
of acquiring any further securities of MedMira other than those
pursuant to the exercise of warrants. "We are very excited about
Morningside's strategic investment in MedMira and the synergies
between our two companies, sharing a common vision and focus," said
Stephen Sham, chairman and CEO of MedMira. "This new financing will
enable MedMira to capitalize on key growth opportunities and
advance key initiatives including the expanding over-the-counter
market and co-infection rapid tests." About Morningside Group
Morningside group is an international investment group founded in
1986 by the Chan family of Hong Kong. The Chan family founded the
Hang Lung Group http://www.hanglung.com/, one of Hong Kong's
largest property development and investment companies, in Hong Kong
in 1960. Morningside group has investments in North America,
Europe, across Asia-Pacific, and since 1992, in Mainland China. For
more information http://www.morningside.com/ For copies of the
early warning report in connection with this private placement
transaction please contact Morningside group's representative at
the contact information noted below. About MedMira MedMira is the
leading global manufacturer and marketer of in vitro flow- through
rapid diagnostic tests. MedMira's tests provide reliable, rapid
diagnosis in just 3 minutes for the detection of human antibodies
in human serum, plasma or whole blood for diseases such as HIV and
hepatitis C. The United States FDA and the SFDA in the People's
Republic of China have approved MedMira's Reveal(R) G2 and
MiraWell(R) rapid HIV tests, respectively. MedMira's Reveal(R) G2
and MiraWell(R) rapid HIV tests are currently used in clinical
laboratories, hospitals, and clinics where professional counselling
and patient treatment are immediately available. The MiraCare(TM)
Rapid HIV Antibody Test is available over-the-counter (OTC) in
pharmacies throughout Hong Kong and Macao Special Administrative
Regions, in the People's Republic of China. MiraCare(TM) is sold
through MedMira's distributor network to pharmacies, hospitals and
laboratories in the European Union. MedMira delivers rapid
diagnostic solutions to healthcare communities around the globe.
Its corporate offices and manufacturing facilities are located in
Halifax, Nova Scotia, Canada with a representative office in
Guilin, China. This news release contains forward-looking
statements, which involve risk and uncertainties and reflect the
company's current expectation regarding future events. Actual
events could materially differ from those projected herein and
depend on a number of factors including, but not limited to,
changing market conditions, successful and timely completion of
clinical studies, uncertainties related to the regulatory approval
process, establishment of corporate alliances and other risks
detailed from time to time in the company quarterly filings. The
TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this statement. For
more information visit MedMira's website at
http://www.medmira.com/. DATASOURCE: MedMira Inc. CONTACT: MedMira
Contacts: Dr. James Smith, Investor Relations, Tel: (902) 450-1588,
E-mail: ; Andrea Young, Corporate Communications, Tel. (902)
450-1588, Email: ; Morningside Contact: Louise Garbarino, 2nd
Floor, Le Prince de Galles, 2-5 Avenue des Citronniers, MC 98000
Monaco, Tel. 377 97-97-47-37
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