Bioniche



August 25, 2010 Bioniche & University of Ottawa Sign Exclusive Global License Agreement for Natural Health Technology August 20, 2010 Additional Phase III Clinical Trial with UrocidinTM Expected to Commence in 2010
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Corporate News Release

Bioniche and Technology Partnerships Canada Amend Agreement on MCC Research Project

29/03/07

BELLEVILLE, ON, March 29, 2007 – Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has reached an agreement with Technology Partnerships Canada (TPC) to amend the existing contribution agreement in support of the Company’s Mycobacterial Cell Wall-DNA Complex (MCC) research project.

The amendments to the agreement include the following provisions, reflective of the evolution of the project and to the satisfaction of both parties:

The anticipated completion date for the project is being extended to September 30, 2011 from June 30, 2006.
An obligation to issue a significant number of share purchase warrants to TPC has been eliminated from the agreement. As a result, the Company will also remove an amount of $1,200,000 from “Other paid-in capital” in its financial statements.
In exchange, the Company has agreed to an acceleration of its (capped) royalty obligations and to certain cash milestone payments.
- The original royalty cap of $11.3 million will be retained, but payments to the cap level will be made at a rate of 6% of product revenues, instead of 1.9%. The Company currently expects such payments to be made between 2010 and 2015.
- On a partnership agreement or upon regulatory approval for commercialization, but commencing no earlier than June 2010, the Company will pay TPC $960,000 per year for five years.

“We appreciate the flexibility of TPC in granting these amendments,” said Mr. Graeme McRae, President & CEO of Bioniche Life Sciences Inc. “The replacement of the warrants with an annual cash payment is particularly helpful, in that it allows the Company to avoid the dilution that would have been experienced with the exercise of the warrants.”

The Company was originally awarded two contribution agreements (conditionally repayable contribution) with TPC in 2001, for:

Projects relating to the Company’s proprietary Mycobacterial Cell Wall technologies. TPC has agreed to contribute C$9.6 million to this project. This is the project that is now amended.
The development and commercialization of an E. coli O157:H7 vaccine. TPC has agreed to contribute C$7.6 million to this project.

“The TPC combined funding has been a great help to Bioniche in its efforts to complete both of these important projects,” added Mr. McRae. “TPC’s support has enabled us to realize the potential of these human and animal health discoveries and to achieve the best possible results for all stakeholders.

A significant benefit to this funding from the federal government is that it has allowed us to keep these innovative, made-in-Canada projects in the country, utilizing Canadian resources. With the MCC project, we have now entered our U.S. Food and Drug Administration (FDA) and Health Canada-approved Phase III clinical program testing the technology – trademarked Urocidin – in bladder cancer patients. With the E. coli O157:H7 cattle vaccine project, we recently received authorization from the Canadian Food Inspection Agency (CFIA) to distribute the vaccine to Canadian veterinarians under a Permit to Release Veterinary Biologics as specified in the Canadian Health of Animal Regulations. We are now scaling up production of this vaccine at our Belleville, Ontario facility.”

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