MedMira announces significant debt reduction and additional growth capital
HALIFAX, Nova Scotia, Dec. 14, 2021 (GLOBE NEWSWIRE) — Today, MedMira Inc. (MedMira) (TSXV: MIR) announces a financial package of over $5.23 million to support the Company’s FY2022 corporate strategy by its largest shareholder and related parties. As part of the deal, MedMira receives a cash injection of $1.67 million and a reduction of $3.56 million of the Company’s current liabilities in exchange for equity.
MedMira’s FY2022 corporate strategy focuses on achieving regulatory approvals for its main products and to build a strong foundation for the Company’s financial stability and profitability. The cash injection contributes to the commercialisation efforts of the REVEAL® G4 CLIA-waived, REVEALCOVID-19® and other product lines. The debt reduction component of this financial agreement supports the Company’s aim to strengthen its financial position by decreasing its overall liabilities and financial expenses.
“While certain processes take unfortunately longer than we had anticipated, we have been working on a number of existing and promising opportunities such as our G4 CLIA* product for the USA or other products destined for either or all three major markets. The FY2022 strategy is built around these opportunities with a clear focus on the financial stability and future profitability of MedMira. Therefore, we are delighted to have been able to negotiate and agree on a financial package which will benefit the Company and all our stakeholders,” said Hermes Chan, CEO of MedMira Inc. “The significant reduction of over 30% in debt supports our continuous drive to become a more solid business partner and present a more attractive investment opportunity.”
MedMira receives $1,665,691.48 cash and converts $3,564,435.92 debt and in exchange will issue a total of 36,069,844 equity units at $0.145 per unit which is subject to a four month hold period. In addition, MedMira Holding AG receives 11,000,000 warrants at an exercise price of $0.150 exercisable within 6 months. Any additional accrued interest or other costs will be waived in favour of MedMira Inc. This transaction is subject to TSX.V regulations and approval.
Additional Corporate Update:
In November, the Company has successfully completed its latest FDA inspection of the Company’s biological medical device products. In addition, the Company announces that it has completed the MDSAP audit and shall receive the MDSAP certification in early December 2021.
MedMira will provide a regulatory update on its COVID-19 product line prior to the year end; in the event of any material changes, these will be provided before that date. Furthermore, MedMira will provide within this month further corporate updates in terms of its board structure.
* MedMira’s REVEAL G4 HIV test for point of care (POC) finger stick whole blood test was FDA-approved previously, and the CLIA Waiver will allow MedMira to expand into significantly larger new channels that are closest to patient care. These channels include physician-office-lab (POL) facilities, clinics, CDC mobile testing facilities and other community healthcare providers.
The U.S. Congress passed the Clinical Laboratory Improvement Amendments (CLIA) in 1988 to establish standards for all laboratory testing and amended it in 2008 to establish more stringent guidelines for in-vitro diagnostics. CLIA standards require that only accurate and easy-to-use tests are performed in the physician’s office. The FDA determines whether a device is CLIA-waived based on extensive evaluations conducted in a CLIA-waived environment by intended users such as physicians, nurses and medical assistants.
MedMira is a leading developer and manufacturer of Rapid Vertical Flow® diagnostics. The Company’s tests provide hospitals, labs, clinics and individuals with instant disease diagnosis, such as HIV, Syphilis, Hepatitis, and SARS-CoV-2, in just three easy steps. The Company’s tests are sold globally under the REVEAL®, REVEALCOVID-19®, Multiplo® and Miriad® brands. Based on its patented Rapid Vertical Flow® Technology, MedMira’s rapid HIV test is the only one in the world to achieve regulatory approvals in Canada, the United States, China and the European Union. MedMira’s corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada. For more information visit medmira.com. Follow us on Twitter and LinkedIn.
This news release contains forward‐looking statements, which involve risk and uncertainties and reflect the Company’s current expectation regarding future events, including statements regarding possible regulatory approval, product launch, future growth, and new business opportunities. 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Chief Financial Officer