MedMira Inc., (TSX Venture: MIR, NASDAQ: MMIRF), a developer and marketer of rapid diagnostics, and Morningside Venture (IV) Investments Limited, a member of the global private equity and venture capital group, the Morningside group, jointly announced today that they have closed $650,000 (Canadian dollars) in convertible debenture financing from Morningside to MedMira, that was announced on August 15, 2008.
"We're very enthusiastic about MedMira's US expansion plans and are pleased to provide the financial support necessary to capitalize on these critical growth opportunities," said George Chang, chief financial officer of Morningside Asia. "This investment and our continuing support of MedMira reflect our belief in the in vitro diagnostics sector as a tremendous growth opportunity. We are confident that MedMira's commitment to advanced rapid diagnostics will lead to success."
Under the terms of the agreement, Morningside acquired a four year convertible debenture (secured) that is convertible into common shares of MedMira at a price of $0.15 per common share in the first two years from the date of the issuance of the debenture and $0.165 in year three and $0.1815 in year four and secured by a security interest in the patent rights and technology related to the Multiplo line of products and a security interest in the STEP UP Technology.
Morningside also acquired a share purchase warrant, exercisable for 4,333,333 common shares of MedMira at a price of $0.15 per common share until August 28, 2010. Morningside owns 10,833,333 common shares of MedMira and if the convertible debenture was converted into common shares and the share purchase warrant was fully exercised, Morningside would be an 18.13% shareholder of MedMira. The convertible debenture and share purchase warrant and the common shares issuable upon the due exercise of the share purchase warrant and upon the due conversion of the convertible debenture are subject to a four month hold period that expires on December 29, 2008.
"Morningside's further investment in MedMira demonstrates its confidence in our vision and our market opportunity," said Hermes Chan, President and CEO of MedMira. "We are eager to put this new capital infusion to work in bringing our new STD line of rapid tests to market and increasing US market share through advancements in our Reveal rapid HIV test."
This transaction is subject to the final approval of the TSX Venture Exchange. Morningside acquired the securities for investment purposes only and has no current intent of acquiring any further securities of MedMira other than those pursuant to the exercise of the share purchase warrant or pursuant to the conversion of the convertible debenture. -- www.cnxmarketlink.com
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