ARIUS Research Inc. (TSX Venture: ARI)
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TORONTO, Dec. 14 /CNW/ - ARIUS Research Inc. (TSX-VE: ARI) announced
today that it had closed a previously-announced convertible bridge loan
facility in the amount of US$2,000,000 from Xmark Opportunity Fund, L.P.,
Xmark Opportunity Fund, Ltd. and Xmark JV Investment Partners, LLC
(collectively "Xmark"). The Company will use funds drawn from this loan
facility for working capital, to fund development of the Company's programs
and for general corporate purposes. The facility was arranged by Dundee
Securities Corp. on behalf of ARIUS.
The loan is convertible at Xmark's option, in whole or in part, into
common shares of ARIUS at a price of $0.80 per common share. The loan bears an
annual interest rate of 13.25 percent and is repayable no later than 24 months
from closing. Under the terms, ARIUS also pays an upfront structuring fee and
issues to Xmark 2,224,125 common share purchase warrants. Each warrant will
entitle Xmark to purchase one common share of ARIUS at a price of $1.00 for a
period of 24 months from closing. The term of the warrants will be reduced on
a pro-rata basis with the amount of principal that is repaid within the first
year. The warrants, and any common shares issued on exercise of the warrants,
are subject to a four-month hold period expiring April 13, 2006.
Prior to the completion of this transaction, Xmark acquired 1,738,500
common shares in ARIUS, representing 16.9% of the common shares outstanding.
"This facility represents a vote of confidence from Xmark in our
scientific and business strategies," said Dr. David S. Young, President and
C.S.O. of ARIUS. "It also gives us further scope to execute our business plan
of product and business development, as we continue to pursue long term
financing."
About ARIUS Research
ARIUS Research Inc. is a biotechnology company dedicated to the discovery
and development of novel anticancer monoclonal antibodies (MAbs). Established
in 1999, ARIUS has built a proprietary technology platform, FunctionFIRST(TM),
that rapidly identifies powerful MAbs targeting a variety of cancer
indications. This antibody generation engine has enabled ARIUS to assemble a
growing pipeline of over 300 functional MAbs, which may be used for commercial
collaborations, out-licensing or in-house development. ARIUS has ongoing
licensing and research partnerships with key biotechnology and drug
development companies that provide revenues and access to external
technologies. The long-term vision of ARIUS is to deliver personalized therapy
by matching multiple antibodies to the distinct antigenic characteristics of
each patient's tumor cells thereby increasing efficacy and avoiding side
effects.
Forward-Looking Statement
Certain statements in this news release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, which involve known and unknown risks, uncertainties and other
factors that may cause our actual results to be materially different from any
future results, performance or achievements expressed or implied by such
statements. Forward-looking statements in this release include, but are not
limited to, ARIUS successfully advancing its new product programs as well as
licensing opportunities. These statements are only predictions and actual
events or results may differ materially. Factors that could cause such actual
events or results expressed or implied by such forward-looking statements to
differ materially from any future results expressed or implied by such
statements include, but are not limited to: early stage of development;
technology and product development; dependence on and management of current
and future corporate collaborations; future capital needs; uncertainty of
additional funding; no assurance of market acceptance; dependence on
proprietary technology and uncertainty of patent protection; intense
competition; manufacturing and market uncertainties; and government
regulation. These and other factors are described in detail in the Company's
Annual Report, forthcoming news releases and other filings with Canadian
securities regulatory authorities and the U.S. Securities & Exchange
Commission. Forward-looking statements are based on our current expectations
and ARIUS is not obligated to update such information to reflect later events
or developments.
Website: www.ariusresearch.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this statement.
