MONTREAL, March 11, 2008 (PRIME NEWSWIRE) -- Viropro Inc. (OTCBB:VPRO) is extremely happy to inform its shareholders that a US$2.0 Million Term Loan Financing Agreement has been signed with 9188-5400 Quebec Inc (hereafter called "First Royalties") on March 7, 2008. The Term Loan is accompanied by a conversion right permitting the lender to convert the capital and interest into Common Shares of Viropro at a deemed price of US$0.03 per Share. The Common Shares issued will be subject to rule 144. The Term Loan will bear interest from the date such Loans are made at the rate of 10 percent (10%) per annum. Interests are payable, on a quarterly basis, in Common Shares of Viropro at a deemed price of US$0.03 per Share. A Deed of Hypothec on all movable property and assets of Viropro will be granted to First Royalties when a minimum of US$1,000,000 financing would have been closed through the Term Loan. As of March 7, 2008, US$249,568 has been received from the US$400,000 First Tranche.
The US$2,000,000 which shall be disbursed by First Royalties in 6 Tranches as follows:
* US$400,000 before March 22, 2008; * US$200,000 before April 15, 2008; * US$300,000 before June 15, 2008; * US$300,000 before August 15, 2008; * US$300,000 before October 15, 2008; * US$500,000 before December 30, 2008
On March 7, 2008, at signature of the abovementioned US$2,000,000 Term Loan Agreement, both parties agreed that it would be more beneficial for the Company that the Board of Directors will appoint Serge Beausoleil as President and CEO of Viropro International and Viropro Inc. to execute the business plan that will have to be completed in the near future. All Board Members resigned after this appointment. Consequently, the Management Team resigned as of March 7, 2008 and New Board Members would be appointed shortly. Basically, Company's focus should remain the same. Mr. Beausoleil and his Team successfully completed their due diligence before the signature of the Term Loan Agreement.
"We are pleased to be signing this agreement with First Royalties. The Term Loan Agreement was initiated by present Viropro's shareholders who deeply believe in the potential of Viropro to become a serious player in the field of biogenerics," stated Mr. Serge Beausoleil, President of Viropro. "The company will announce shortly the composition of the Board of Directors as well as for the Scientific Committee and for the other members of the Management Team. Former Scientific Team joined the new Management Team and former Managers will act as consultant for a predetermined transition period," added Mr. Beausoleil.
About Viropro Inc.
Viropro Inc. conducts operations through its subsidiary Viropro International Inc., whose Head Office is located in Montreal, Canada. Viropro is a rapidly expanding biopharmaceutical company specializing in the transfer of its technologies for industrial production of biogeneric therapeutic proteins, excluding therapeutic vaccines, for the treatment of various diseases including cancer, diabetes, hepatitis or multiple sclerosis. The company's principal objective is to bring about the transfer of technology to pharmaceutical companies in emerging markets with unmet medical needs such as in South America, Asia and Africa. To expand its range of expertise in biopharmaceuticals excluding therapeutic vaccines, Viropro has concluded strategic alliances with various scientific and business partners renowned in national and international spheres. Viropro's business model rests on a strategy aimed at generating recurrent short and long-term revenues, all while maximizing the value of assets and profits of its shareholders.
Viropro Inc. 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.
For more information on Viropro Inc., please visit our website on www.viropro.com