HALIFAX, March 17 /PRNewswire-FirstCall/ - MedMira Inc., ("MedMira") (TSX Venture: MIR, NASDAQ: MMIRF) the global market leader in premium rapid diagnostic solutions and Morningside Venture (IV) Investments Limited ("Morningside"), a member of the global private equity and venture capital group, the Morningside group, jointly announced today that they have closed $6.5 million (Canadian dollars) in equity financing from Morningside to MedMira, that was announced on March 6, 2006. "With the terms of the deal now finalized, we look forward to working with MedMira's executive team on the strategic growth plans for the company," said George Chang, chief financial officer of Morningside Asia. "We are confident that MedMira can capitalize on the potential for their existing line of rapid tests while continuing to develop new innovative diagnostic solutions for the global healthcare market." Under the terms of the agreement Morningside acquired 10,833,333 equity units at $0.60 per unit, for total net proceeds of $5.6 million in cash after retirement of a USD$775,000 promissory note. Each equity unit consists of 1 common share and one half of a common share purchase warrant, for a total of 10,833,333 common shares and 5,416,667 common share purchase warrants being issued. Each warrant entitles Morningside to purchase one common share of MedMira at $0.69 per share for a two year period, ending on March 16, 2008. Following this private placement transaction, Morningside owns 10,833,333 common shares of MedMira and warrants to acquire 5,416,667 common shares of MedMira. As a result, Morningside has become an 18.8% Shareholder of MedMira. Both the common shares and the common share purchase warrants are subject to a four month hold period that expires on July 16, 2006. Morningside has the right to nominate one director to the Board of MedMira. 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 warrants. "We are very excited about Morningside's strategic investment in MedMira and the synergies between our two companies, sharing a common vision and focus," said Stephen Sham, chairman and CEO of MedMira. "This new financing will enable MedMira to capitalize on key growth opportunities and advance key initiatives including the expanding over-the-counter market and co-infection rapid tests." About Morningside Group Morningside group is an international investment group founded in 1986 by the Chan family of Hong Kong. The Chan family founded the Hang Lung Group www.hanglung.com, one of Hong Kong's largest property development and investment companies, in Hong Kong in 1960. Morningside group has investments in North America, Europe, across Asia-Pacific, and since 1992, in Mainland China. For more information http://www.morningside.com For copies of the early warning report in connection with this private placement transaction please contact Morningside group's representative at the contact information noted below. About MedMira MedMira is the leading global manufacturer and marketer of in vitro flow- through rapid diagnostic tests. MedMira's tests provide reliable, rapid diagnosis in just 3 minutes for the detection of human antibodies in human serum, plasma or whole blood for diseases such as HIV and hepatitis C. The United States FDA and the SFDA in the People's Republic of China have approved MedMira's Reveal(R) G2 and MiraWell(R) rapid HIV tests, respectively. MedMira's Reveal(R) G2 and MiraWell(R) rapid HIV tests are currently used in clinical laboratories, hospitals, and clinics where professional counselling and patient treatment are immediately available. The MiraCare(TM) Rapid HIV Antibody Test is available over-the-counter (OTC) in pharmacies throughout Hong Kong and Macao Special Administrative Regions, in the People's Republic of China. MiraCare(TM) is sold through MedMira's distributor network to pharmacies, hospitals and laboratories in the European Union. MedMira delivers rapid diagnostic solutions to healthcare communities around the globe. Its corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada with a representative office in Guilin, China. This news release contains forward-looking statements, which involve risk and uncertainties and reflect the company's current expectation regarding future events. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement. For more information visit MedMira's website at www.medmira.com.
SOURCE MedMira Inc.