Mistral Pharma Inc. (TSX Venture Exchange: MIP) (“Mistral”) announces today that it has secured a US$1.5 million debt financing from MMV Financial Inc. (“MMV”). In connection with the loan, Mistral issued 2,389,170 bonus warrants to MMV and 284,482 warrants to RCC Ventures, LLC in payment of a finder’s fee, each warrant entitling its holder to purchase one treasury common share of Mistral, at a price of $0.10, until October 17, 2009. A resale restriction applies to the warrants and underlying common shares of Mistral until February 18, 2007.
“These additional funds will support Mistral’s pursuit of ongoing product development projects” commented Mr. Bertrand Bolduc, Mistral’s President &CEO. “We are proud to have MMV among our partners. The investment made by MMV in Mistral demonstrates its confidence in our development strategy and the value of our product portfolio” added Mr. Bolduc. ”We are proud to be associated with one of the most promising companies in the life sciences sector in Canada”, expressed Mr. Jacques Perreault, Senior Vice-President of MMV. ”We are confident that Mistral possesses the key elements, being the management, the intellectual property and the drug candidates, to become a market leader in the reformulation field” he added.
About Mistral Pharma Inc.
Mistral is a pharmaceutical product development and drug delivery company and its first branded product, MIST-B01, showed positive results at its first pilot clinical trial. Mistral is also working on two other control-delivery branded products. Mistral positions itself as a development partner for specialty pharmaceutical companies. Additional information about Mistral Pharma can be obtained on Mistral Pharma's website at http://www.mistralpharma.com/.
About MMV Financial Inc.
MMV is a Toronto-based specialty finance company providing creative debt solutions directly to mid-stage technology and life sciences companies, with a focus on the Canadian and North American markets. MMV is backed by top U.S. and Canadian private equity firms and financial institutions, including Conning Capital Partners of Harford, Connecticut, Caisse de dépôt et placement du Québec of Montreal, and Wells Foothill, a part of Wells Fargo Company. Fore more information visit us at: www.mmvf.com.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Mistral. These statements are based on assumptions and uncertainties as well as on the management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for Mistral’s products, the impact of price pressures exerted by competitors, results from clinical studies and regulatory approval process, as well as general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
For more information:
For Mistral Pharma Inc.
Bertrand F. Bolduc, B.Pharm., MBA
President &Chief Executive Officer
Mistral Pharma Inc.
(514) 920-0909 # 24
Alain Provencher, CA
Vice-president, Finance &Chief Financial Officer
Mistral Pharma Inc.
(514) 920-0909 # 22
For MMV Financial Inc.
MMV Financial Inc.