Bioniche, Paladin close debt refinancing agreement and sign first licensing deal for Urocidin

Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC) ("Bioniche") and Paladin Labs Inc.(TSX:  PLB) ("Paladin") today announced the official closing of the various agreements associated with a comprehensive strategic collaboration to refinance and increase Bioniche's debt, provide new equity, and enter into the first licensing deal for Bioniche's Phase III bladder cancer product - Urocidin™. This collaboration was originally announced on June 5, 2013.

The closing of these deals has resulted in the issuance of a further $5 million in debt financing to Bioniche from Paladin.

As partial consideration for the entering into of the amended loan transaction, Bioniche granted Paladin Warrants to acquire Common Shares ("Warrants"), such Warrants to expire on the earlier of two years from the complete repayment by Bioniche of the loan or May 31, 2019. The following number of Warrants were issued to Paladin, subject to the terms noted below:

• 750,000 Warrants at an exercise price of $0.31
• 500,000 Warrants at an exercise price of $0.50
• 250,000 Warrants at an exercise price of $0.70
• 250,000 Warrants at an exercise price of $0.85
• 250,000 Warrants at an exercise price of $1.00
• If the loan has not been repaid by Bioniche by January 1, 2014, 500,000 Warrants will be exercisable at an exercise price equal to the 5-day volume weighted average share price calculated as at December 31, 2013.
• If the loan has not been repaid by Bioniche by April 1, 2014, 500,000 Warrants will be exercisable at an exercise price equal to the 5-day volume weighted average share price calculated as at March 31, 2014.

Bioniche is not required to seek shareholder approval in connection with the issuance of the Warrants to Paladin.

SOURCE Bioniche Life Sciences Inc.