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Capital Royalty Provides Financing to Bioniche Life Sciences

 -- Highly-customized financing provides $20 million in growth capital to innovative life sciences company --


Houston, TX – May 1, 2012 – Effective April 10, 2012, Capital Royalty Partners II, L.P. and its parallel investment vehicles (“Capital Royalty”) entered into a $20 million term loan and revenue interest financing agreement with Bioniche Life Sciences Inc. (“Bioniche”) (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company (“Bioniche”).


Under the terms of the agreement, Capital Royalty provided Bioniche a five-year $20 million loan, with proceeds from the financing intended to support corporate growth initiatives across Bioniche’s three primary business units – Human Health, Animal Health, and Food Safety. 


"We are very pleased that Capital Royalty has expressed its confidence in the company through this strategic investment," said Mr. Graeme McRae, Chairman, President & CEO of Bioniche. "Through the due diligence process, Capital Royalty demonstrated an excellent understanding of our business and commercialization program. It is particularly gratifying to be able to receive such an investment with no dilution of our equity shareholders."


"We welcome the opportunity to develop and fund customized financing structures for innovative life science companies like Bioniche," said Charles Tate, Chairman & Founder of Capital Royalty L.P. "The company has a diverse base of existing revenue in addition to exciting opportunities for future growth."


The terms of the agreement include a 15% interest rate, with a portion deferred and capitalized for the first three years of the loan. An additional royalty interest of 2% will be paid to Capital Royalty on all of Bioniche's revenue during the term of the loan. Principal repayments of eight equal installments begin in June 2015 with a maturity date on March 31, 2017. The loan is secured by a first priority security interest in substantially all of Bioniche’s assets other than those assets currently pledged to other parties or otherwise restricted.


About Bioniche Life Sciences Inc.

Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary and innovative products for human and animal health markets worldwide. The fully-integrated company employs more than 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value.


Bioniche Life Sciences Inc. has been named one of the Top 50 Best Small and Medium-Sized Employers in Canada for 2011. For more information, please visit www.bioniche.com.


About Capital Royalty L.P.

Founded in 2003, Capital Royalty is a market pioneer and innovator in healthcare investing focused on intellectual property investments in approved products through a variety of structures including royalty bonds, secured debt, revenue interests and traditional royalty monetizations. Collectively, the Capital Royalty investment team has more than 140 years of healthcare, capital markets, private equity and investment banking experience, having completed more than 50 royalty transactions representing $4 billion in capital over the past 15 years.


Capital Royalty works directly with leading healthcare companies, research institutions, and inventors to provide customized solutions to meet their unique financing needs. The firm is actively making investments through its managed investment funds which focus on sourcing, structuring, and investing in healthcare assets that provide superior risk-adjusted returns, attractive current cash yields, strong downside protection, and minimal correlation to other asset classes or the broader economy.

The firm is headquartered in Houston, Texas with offices in Boulder, Colorado and New York City. For further information, please visit www.capitalroyalty.com.


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