Objectives of this financing:
-- Attain profitability and revenue objectives for 2006
-- Accelerate business development of Viropro on international
markets
-- Maximize investors' stock value
-- Phase 1 amount for financing: Between US $700,000 and $1.3
million
-- Option on a further $1.5 million dollars for acquisition
of projects
MONTREAL, Feb. 2, 2005 (PRIMEZONE) -- Viropro Inc. (OTCBB:VPRO) announced today it has concluded a term sheet with Securcap Corporation to provide a convertible debenture. This financing will consolidate the financial position of Viropro for the next 18 months, thereby reinforcing the company's position during final negotiations of certain current projects. The closing on financing is expected before March 1, 2006.
The minimum amount offered for the convertible debenture is 700,000 dollars and the maximum 1.3 million dollars. It carries a conversion right of a minimum of .20 and a maximum of .30. The shares issued following a conversion by the holder will be governed by Rule number 144. A subscription voucher equivalent to a premium of 25% of the conversion price is attached to the conversion. A right of first refusal is also offered to subscribe for an additional debenture amount of 1.5 million dollars with a conversion discount of 30% on Viropro's average share price over the past 20 days.
The debenture will carry an interest rate of 6% and will be issued in accordance with Regulation D or S of the U.S. Securities Act. Closing is expected on or before March 1, 2006, depending on the finalization of legal documents. The date of maturity for the debenture is 36 months from the date of issuance of the debenture. This financing is conditional to the authorization of a capital stock increase for which a vote will take place on February 7, 2006, in Montreal.
Dr. Jean-Marie Dupuy, CEO of Viropro stated: "We are very happy to have concluded this financing, as it will facilitate and accelerate various business development on international markets, particularly those regarding technological transfers of biogeneric products. All of our strategies aim at optimizing the value and profitability of our shareholders assets. Further, the additional financing of 1.5 million dollars should facilitate our current discussions about acquiring high added value projects for the Company and its shareholders."
About Viropro, Inc.
Viropro, Inc. (OTCBB:VPRO) operates mainly through its subsidiary Viropro International Inc., with headquarters in Montreal, Canada. Viropro International continues to rapidly expand its portfolio of technologies and exclusive biogeneric recombinant products in the life sciences field, thanks to its strong strategic alliances with key partners and diverse business projects. These projects include technology transfers to pharmaceutical companies on the international market, thereby enabling the company to target short-term revenues while at the same time increasing the value of its shares and those of its shareholders.
For more information on Viropro Inc, please visit our website on www.viropro.com.
Viropro, Inc.'s Safe Harbor Statement
Except for any historic information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are subject to section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934, and are subject to safe harbour created by these sections. Any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, goals, assumptions of future events or performances are not statements of historical fact and may be "forward looking statements". Forward-looking statements in this release may be identified through the use of such words as "expects," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements, which involve numerous risks and uncertainties, including the Company's ability to market its products and services in a competitive environment as well as other factors.