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
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
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.
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
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
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.