VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2013) - Sirona Biochem Corp. (TSX VENTURE:SBM)(SRBCF)(ZSB.F), ("the Company") announced today that it has completed the sale of 14,245,000 units (each a "Unit") at a price of $0.10 per Unit for total proceeds of US$1,424,500 in the first tranche of its previously announced Private Placement (the "Private Placement"). Strong support was received from Vancouver-based investment firm Pathfinder Asset Management.
"We are very pleased with the enthusiastic support we have received from existing and new investors and we are especially excited to have Pathfinder Asset Management join in supporting our organization," commented Sirona Biochem Chief Executive Officer Neil Belenkie.
Each Unit consists of one common share of the Company (a "Share") and one transferable share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share (a "Warrant Share") of the Company at any time for two years from the closing date of the Private Placement at a price of $0.15 per Warrant Share. Insiders participating in this Private Placement include Dr. Howard Verrico with the purchase of 500,000 units and Mr. Michael Rogers with the purchase of 250,000 units.
In connection with closing the Private Placement, the Company has agreed to pay finders' fees in the aggregate amount of $140,370 in cash to various finders (the "Finders") for their efforts in sourcing purchasers for the Private Placement. The Finders will also receive 769,650 non-transferable finders' warrants (each a "Finder's Warrant") representing 10% of the Units placed by each Finder. Each Finder's Warrant entitles the holder to purchase one common share (a "Finder's Warrant Share") at an exercise price of $0.15 per Finder's Warrant Share until March 5, 2015. The payment of all finders' fees in connection with the Private Placement is subject to final approval by the TSX Venture Exchange.
All securities are subject to a four-month and one day hold period expiring on July 6, 2013.
The Company intends to use the proceeds from the Private Placement for research and development, operations, and business development activities. All securities to be issued under the Private Placement will be subject to a hold period. Closing of the Private Placement is subject to certain conditions including final TSX Venture Exchange acceptance.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Pathfinder Asset Management
Pathfinder Asset Management was formed in 2010, and is an evolution of a family office that began more than 30 years ago. The firm brings together seasoned investment professionals with decades of portfolio management and analytical experience, focused directly on the stewardship of investment portfolios for high net worth individuals and institutions. For more information visit www.paml.ca.
About Sirona Biochem Corp.
Sirona Biochem is a biotechnology company developing diabetes therapeutics, skin depigmenting and anti-aging agents for cosmetic use, biological ingredients and cancer vaccine antigens. The company utilizes a proprietary chemistry technique to improve pharmaceutical properties of carbohydrate-based molecules. Sirona Biochem is the parent company of French-based biotechnology company, TFChem. For more information visit www.sironabiochem.com.
Sirona Biochem cautions you that statements included in this press release that are not a description of historical facts may be forward-looking statements. Forward-looking statements are only predictions based upon current expectations and involve known and unknown risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of release of the relevant information, unless explicitly stated otherwise. Actual results, performance or achievement could differ materially from those expressed in, or implied by, Sirona Biochem's forward-looking statements due to the risks and uncertainties inherent in Sirona Biochem's business including, without limitation, statements about: the progress and timing of its clinical trials; difficulties or delays in development, testing, obtaining regulatory approval, producing and marketing its products; unexpected adverse side effects or inadequate therapeutic efficacy of its products that could delay or prevent product development or commercialization; the scope and validity of patent protection for its products; competition from other pharmaceutical or biotechnology companies; and its ability to obtain additional financing to support its operations. Sirona Biochem does not assume any obligation to update any forward-looking statements except as required by law.