VANCOUVER, BRITISH COLUMBIA, Oct. 8, 2009 (Marketwire) --
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/08/09 -- Med BioGene Inc. (TSX VENTURE: MBI) today closed the third and final tranche of its previously announced non-brokered private placement through the issuance to SEP Capital Corporation ("SEP"), a capital pool company listed on the TSX Venture Exchange (TSX VENTURE: SEP.P), of 4,500,000 units for gross proceeds of $360,000. MBI also issued to SEP 125,000 units in satisfaction of $10,000 of expenses related to the private placement.
Including the first two tranches which closed on June 5 and 25, 2009, MBI received aggregate gross proceeds under the private placement of $1,960,000.
Each unit was issued at a price of $0.08 and consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share at a price of $0.10 for a period of 24 months, subject to the acceleration by MBI of the expiration of the warrants if the closing price of the common shares on the TSX Venture Exchange is greater than $0.30 for twenty or more consecutive trading days.
MBI also paid to a third party a finder's fee of $12,500 and issued compensation options to acquire 156,250 MBI common shares (i.e. equal to $12,500 of common shares at $0.08 per share) pursuant to the private placement.
The private placement is subject to customary conditions, including final acceptance by the TSX Venture Exchange. MBI will use the proceeds of the private placement for the development and commercialization of LungExpress Dx(TM) and for general corporate purposes.
The securities issued pursuant to the private placement are subject to a four-month hold period from the date of closing.
About Med BioGene
MBI is a life science company focused on the development and commercialization of genomic-based personalized clinical laboratory diagnostic tests.
MBI's lead product, LungExpress Dx(TM), is expected to be the first commercially available gene expression-based test for early-stage non-small-cell lung cancer that analyzes the molecular profile of a patient's tumour to provide information to assist in tailoring treatment for that specific patient. LungExpress Dx(TM) is the first and only gene expression-based test for non-small-cell lung cancer shown to assist in determining a patient's prognosis for survival and benefit from chemotherapy.
MBI is committed to advancing personalized medicine by commercializing tests that provide clinically relevant information to both save lives and reduce health care costs.
Certain statements in this press release contain forward-looking information under applicable Canadian securities legislation.
