ProMetic Reaches Understanding for Commercialization of Several ...

Tag : Protein Products

MONTREAL, QUEBEC -- (MARKET WIRE) -- 08/05/08 -- ProMetic LifeSciences Inc. ( TSX:PLI ) ("ProMetic") announces today that it has reached an understandingwith a fully integrated, U.S.-based, biotechnology company withrespect to the development and global commercialization of severalbiopharmaceutical products in ProMetic's Protein TechnologyDivision.
In addition to licensing, development and milestone fees as well ason-going royalties on sales of products, the definitive agreementswill provide for an initial strategic investment in ProMetic of $7million at a share price of $0.47. This transaction is anticipatedto provide a significant funding commitment towards the developmentand commercialization of the products, which will contribute toProMetic's revenue growth as early as 2008.
The definitive agreements will also provide for possible additionalinvestments in ProMetic, which may be triggered by either thebiotechnology company or ProMetic, upon fulfillment of certainpredetermined conditions. Further, the definitive agreements willprovide the biotechnology company to have a right to representationon ProMetic's board of directors.
Definitive agreements regarding the deal, which will be subject tocustomary closing conditions, including TSX approval, are intendedto be negotiated and executed in the following weeks.
The Company will file a short form base shelf prospectus or "shelfregistration" with Canadian securities regulators in part tofacilitate the completion of this transaction.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. ( www.prometic.com ) is a biopharmaceutical company specialized in the research,development, manufacture and marketing of a variety of commercialapplications derived from its proprietary Mimetic Ligand(TM)technology. This technology is used in large-scale purification ofbiologics and the elimination of pathogens. ProMetic is also activein therapeutic drug development with the mission to bring to marketeffective, innovative, lower cost, less toxic products for thetreatment of hematology and cancer. Its drug discovery platform isfocused on replacing complex, expensive proteins with synthetic"drug-like" protein mimetics. Headquartered in Montreal (Canada),ProMetic has R&D facilities in the U.K., the U.S. and Canada,manufacturing facilities in the U.K. and business developmentactivities in the U.S., Europe, Asia and in the Middle-East.
Forward-Looking Statements
This press release contains forward-looking statements aboutProMetic's objectives, strategies and businesses that involve risksand uncertainties. These statements are "forward-looking" becausethey are based on our current expectations about the markets weoperate in and on various estimates and assumptions. Actual eventsor results may differ materially from those anticipated in theseforward-looking statements if known or unknown risks affect ourbusiness, or if our estimates or assumptions turn out to beinaccurate. Such risks and assumptions include, but are not limitedto, ProMetic's ability to develop, manufacture, and successfullycommercialize value-added pharmaceutical products, the availabilityof funds and resources to pursue R&D projects, the successfuland timely completion of clinical studies, the ability of ProMeticto take advantage of business opportunities in the pharmaceuticalindustry, uncertainties related to the regulatory process andgeneral changes in economic conditions. You will find a moredetailed assessment of the risks that could cause actual events orresults to materially differ from our current expectations on page21 of ProMetic's Annual Information Form for the year endedDecember 31, 2007, under the heading "Risk Factors". As a result,we cannot guarantee that any forward-looking statement willmaterialize. We assume no obligation to update any forward-lookingstatement even if new information becomes available, as a result offuture events or for any other reason, unless required byapplicable securities laws and regulations.