MONTREAL, March 2, 2006 (PRIMEZONE) -- Dr Jean-Marc Dupuy, Chief Executive Officer of Viropro Inc., "Viropro" or "the company" (OTCBB:VPRO) is pleased to announce that Viropro has concluded a convertible debenture financing agreement for $1,310,000 U.S. drawn up in accordance with the terms and conditions of the agreement signed on February 2, 2006 between Viropro Inc. and Securcap Corporation. This financing will consolidate the company's financial position for the next 18 months while reinforcing Viropro's business development strategy and current negotiations with international partners.
The debenture will carry an interest rate of 6% and will be issued in accordance with Regulation D or S of the U.S. Securities Act. The date of maturity for the debenture is 36 months from the date of its issuance. The payment for the securities subscribed for herein are to be made in five equal installments; on or before March 1, 2006. The 1st installment has already been received. This financing is accompanied by a conversion right for a minimum of .20. The shares issued, following conversion by the holder, will be subject to rule 144. A subscription voucher equal to a premium of 25% of the conversion price is attached to the conversion.
Viropro has also reached an agreement with Securcap Corporation covering the possibility of another subscription for an additional 1.5 million debentures with a conversion discount of 30% based on the average price for a Viropro share over the preceding 20 days.
"The first announcement made last February on the terms and conditions for financing generated a lot of enthusiasm. It also strengthened the overall confidence of the financial community toward Viropro," stated Dr. Jean-Marie Dupuy. He added: "This financing gives us the thrust to actively pursue the development of our business and to finalize new marketing and partnership agreements."
About Viropro Inc.
Viropro Inc. operates mainly through its subsidiary Viropro International inc. with its Head Office is in Montreal, Canada. Viropro is a company specialized in marketing its know how and expertise in technology transfer for industrial production of therapeutic proteins. Its primary objective is to assist pharmaceutical companies in regions of the globe with unmet medical needs such as South America, Asia and Africa. Viropro develops and sell therapeutic proteins at a competitive price. In order to deepen its expertise, Viropro has concluded strategic alliances with renowned scientific and business partners, both at the national and international levels. Viropro relies on a business model built to generate short and medium term recurrent revenues while increasing the value of stock for both the company and its shareholders.
For more information on Viropro Inc, please visit our website on www.viropro.com
About HKDP Communications and public affairs
One of Quebec leading communication and public affairs firm, HKDP Communications and public affairs, is a fully owned subsidiary of Hill & Knowlton with 71 offices in 40 countries. HKDP employs thirty professionals in its Quebec and Montreal offices.
About Hill & Knowlton Canada
Hill & Knowlton Canada (www.hillandknowlton.ca) is Canada's leading public affairs and public relations firm specializing in government relations and corporate, crisis, consumer marketing, technology, healthcare and life sciences communications as well as financial and investor relations. Hill & Knowlton Canada is also a recipient of Level 3 Certification under the National Quality Institute's Progressive Excellence Program. Its parent company, Hill & Knowlton, Inc, is a world leader in public relations and public affairs, with 71 offices in 40 countries, and is part of the WPP Group plc (Nasdaq:WPPGY) (www.wpp.com), one of the world's largest communications services groups.
Viropro, Inc's Safe Harbor Statement
Except for any historic information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are subject to section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934, and are subject to safe harbor created by these sections. Any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, goals, assumptions of future events or performances are not statements of historical fact and may be "forward looking statements". Forward looking statements in this release may be identified through the use of such words as "expects", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could", or "might" occur. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements, which involve numerous risks and uncertainties, including the Company's ability to market its products and services in a competitive environment as well as other factors.