Biomira Announces Expansion of Equity Line...
for Up to U.S.100 Million
Financing Raises Equity Line Threefold Without Additional Shares
EDMONTON, Alberta, Feb. 1 /PRNewswire/ -- Biomira Inc. (Nasdaq: BIOM) (Toronto: BRA) today announced its equity line of financing was increased to U.S. $100 million from U.S. $36 million announced in August 1999. The increased dollar amount of the facility should, among other things, provide sufficient funds for Biomira to complete clinical development of THERATOPE(R) vaccine for metastatic breast cancer and BLP25 for non small-cell lung cancer.
It is noteworthy that while the funds potentially available to Biomira under the facility have been significantly increased no additional shares of Biomira stock will need to be issued. The number of shares issuable under the facility remains unchanged.
The share price for each draw down by Biomira is based on the average trading price of the Company's common stock during the applicable period. The Company may draw down the capital in installments of up to U.S. $10 million approximately monthly, subject to specified draw down conditions. Biomira potentially will have access to U.S. $100 million over the next 42 months increased from 30 months under the previous arrangements. This gives the Company much greater flexibility and the ability to lock in on a favorable stock price.
"The continued strength in Biomira stock, both in terms of market capitalization and liquidity, make it possible to increase the dollar amount of the equity line without increasing the number of shares issuable there under," commented Ed Taylor, Chief Financial Officer of Biomira. "As Biomira continues negotiations with potential partners, the equity line gives the Company the ultimate flexibility of taking only the cash needed to develop our product portfolio," Taylor concluded.
"This puts us in the enviable position of being able to choose whether to take THERATOPE(R) vaccine and BLP25 through the full clinical process ourselves, or bring on board a corporate partner in the near term, depending on which option best serves the interests of our shareholders," commented Alex McPherson, MD, PhD, President and CEO of Biomira. "This funding leverages the power of our late-stage pipeline and stock for maximum financial benefit while strengthening our negotiating position with potential marketing partners."
Biomira is currently enrolling up to 900 evaluable patients with metastatic breast cancer in a multinational, pivotal Phase III clinical trial with THERATOPE(R) vaccine. This is the Company's lead product candidate, and it has broad potential for immunotherapy of other common cancers. Biomira is developing a portfolio of complementary cancer vaccines, including BLP25, now in Phase II trials with patients who have non-small cell lung cancer. |
