(TSX Venture: ARI)
TORONTO, Nov. 18 /CNW/ - ARIUS Research Inc. ("ARIUS" or the "Company",
TSX-VE: ARI) announced today that it has received a commitment from Xmark
Opportunity Fund, L.P. and Xmark Opportunity Fund, Ltd. ("Xmark") to provide a
US$2,000,000 convertible bridge loan facility, subject to a number of
conditions, including regulatory and Exchange approvals. 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 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. Under the
proposed terms, ARIUS will also pay an upfront structuring fee and issue 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 loan bears an annual interest rate of 13.25 percent and is repayable
at any time no later than 24 months from closing.
"This loan strengthens our cash position as we continue pursuing the
objectives of our business plan," said David Young, President and C.S.O. of
ARIUS. "We are also pleased that a respected U.S biotech-focused investor has
chosen to be part of the ARIUS story."
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. ARIUS is listed on the TSX Venture Exchange under the symbol "ARI".
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.
