Jul. 18, 2011 (Canada NewsWire Group) --
Funds to Support a Strategic Refinance Plan including Compromise Debt Arrangements
HALIFAX, July 18, 2011 /CNW/ - MedMira Inc., ("MedMira") (TSXV: MIR), a developer and marketer of rapid diagnostic technology and solutions, today announced that it has entered into an agreement with Andurja Beteiligungen AG (Andurja), a Swiss company based in Lucerne, Switzerland, for a CAD $1.5 million equity investment to begin a strategic refinance plan that will use compromise debt arrangements intended to reduce the Company's overall debt.
Andurja previously invested CAD $2 million in the Company in 2009 and CAD $1 million in 2010. Andurja is the controlling and majority shareholder of MedMira's strategic partner Vitest AG.
"This investment is a first step in restructuring approximately 50% of the Company's debt, which represents the largest segment of MedMira's annual expenditures. The plan is intended to enhance our credibility with key stakeholders including financial partners, customers, and suppliers," said Hermes Chan, CEO, MedMira. "Together with recent sales wins, including the U.S. Army contract award, increasing orders from China, and the ongoing business development initiatives in global markets, this refinancing plan moves the Company in the right direction."
Under the terms of the agreement Andurja will acquire 30,000,000 equity units at $0.05 per unit. Each equity unit consists of one common share and one common share purchase warrant and is subject to a four month hold period beginning July 18, 2011. Each full warrant entitles Andurja to purchase one common share of MedMira at $0.10 per share exercisable over four years. Under the terms of this transaction, Andurja will increase its ownership of MedMira common shares from 27.1% to 35.7% and this could increase to 42.6% if all warrants related to this transaction are exercised. If all warrants held by Andurja from prior transactions were also exercised, Andurja's ownership would be 52.6%.
MedMira is actively evaluating qualified individuals, who can bring diverse and strategic value, to join the Company's Board at the Annual General Meeting in January 2012.
This agreement has received conditional approval and is subject to final approval of the TSX Venture Exchange.
About MedMira
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics and technologies. The Company's tests provide hospitals, labs, clinics and individuals with reliable, rapid diagnosis of infectious diseases. MedMira diagnostics are sold under the Reveal®, MiraWell®, Multiplo™, and Miriad brands in global markets. MedMira's rapid HIV test is the only rapid HIV test in the world to achieve regulatory approvals in Canada, the United States, China and the European Union. MedMira's corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada. For more information visit MedMira's website at www.medmira.com.
This news release contains forward-looking statements, including statements regarding development of sales opportunities, 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.
MedMira Contact:
Andrea Young
T. 902-450-1588
E. ayoung@medmira.com