Bioniche secures $19m finance facility

By Dylan Bushell-Embling
Monday, 19 March, 2012

Bioniche Life Sciences (ASX:BNC) has accepted a US$20 million ($18.9 million) financing offer from US financing company Capital Royalty.

Investment funds managed by Capital Royalty have agreed to grant Bioniche a five-year loan with a partially-deferred interest rate of 15%.

Bioniche, a Canadian dual-listed technology company, has also agreed to pay an additional royalty interest of 2% of all product sales revenues during the term of the loan.

Announcing the deal, Bioniche CEO Graeme McRae said he was pleased to “be able to receive such an investment with no dilution of our equity shareholders.”

Bioniche has around 200 employees. The company listed on the ASX in January last year, following a $12.47 million CDI placement. It has been listed on the Toronto stock exchange since 1992.

The company's Australian division concentrates on the animal health segment, but the company also has human health and food safety operating units.

In February, Bioniche reported a C$4 million ($4.04 million) net loss for the second quarter, up 72% from a year earlier. At the time, the company revealed it was seeking non-dilutive financing to address a cash shortfall.

Capital Royalty concentrates on the healthcare sector, making intellectual property investments through its managed investment funds.

Bioniche (ASX:BNC) shares were trading unchanged for the day at $0.620 by 4pm on Monday. The price is down from $1.500 at time of listing.

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