HALIFAX, Aug. 15 /CNW/ - MedMira Inc., ("MedMira") (TSX Venture: MIR, NASDAQ: MMIRF), a developer and marketer of rapid diagnostics, announces today that it has entered in to an agreement in principal with an investor for the issuance of a CDN $650,000 convertible debenture. Under the terms of the agreement, the debenture will bear interest of 9% per annum and will mature four years from the date of close. The debenture is convertible in whole or in part into common shares of MedMira at $0.15 per share during the first two years. The conversion price will increase by 10% in year three and increase by an additional 10% in year four. This agreement is subject to approval of the TSX.
This investment will enable MedMira to fuel various growth-centered activities in US market, including expansion of the Company's product offering. MedMira will be pursuing regulatory approvals for new rapid tests for sexually transmitted diseases as well as advancements in the Reveal rapid HIV test currently being sold in this market.
"This investment will enable MedMira to move forward in the regulatory approval process for our new line of STD rapid tests as well as bring additional advancements to our already successful Reveal rapid HIV tests in the US market," said Hermes Chan, president and CEO of MedMira. "The US is a key growth market for MedMira and bringing new products forward in an advanced healthcare system such as US positions us for further growth in international markets, with FDA approved products in our portfolio."
About MedMira
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics. The company's tests provide hospitals, labs, clinics and individuals around the world with reliable, rapid diagnosis for diseases such as HIV and hepatitis C in just three minutes. The company's tests are sold under the Reveal(R), MiraWell(R), MiraCare(TM) and Multiplo(TM) brands in global markets. MedMira's rapid HIV test is the only one in the world to achieve regulatory approvals in Canada, the United States, China and the European Union.
In January 2006, MedMira launched the Maple Biosciences division to develop and commercialize diagnostic instruments based on two revolutionary biosensor-based technology platforms. For more information visit www.maplebio.com.
MedMira's corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada with a representative office in China. Maples Biosciences' labs are located in Toronto, Ontario. For more information visit MedMira's website at www.medmira.com.
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.
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