Kane Biotech Appoints Board Advisor and Announces Private Placement Offering
WINNIPEG, MANITOBA -- (MARKET WIRE) -- 11/02/10 -- Kane Biotech Inc. (TSX VENTURE: KNE), a biotechnology company engaged in the development and commercialization of products that prevent and remove microbial biofilms, is pleased to announce that Dr. Essam Hamza has been appointed an advisor to the board of directors pending his anticipated nomination as a director at the Company's next annual meeting of shareholders.
Dr. Essam Hamza is CEO and co-founder of Hamza Thindal Capital Corporation, a capital markets consulting company. In addition, he has been a family physician for the past 11 years in British Columbia and Alberta, Canada. He graduated from the University of Alberta with a medical degree and an honors degree in biochemistry. Dr. Hamza has been a very successful investor in the Canadian market for the past 20 years and has helped raise several million dollars for emerging companies over the past 5 years.
"It is my pleasure to welcome Dr. Essam Hamza as an advisor to our board," stated Kane Biotech Chairman Dr. Albert Friesen. "His knowledge of the capital markets and extensive network in the investment community will provide substantial value to Kane."
The Company also announces today a non-brokered private placement offering (the "Offering") of up to 3,125,000 units ("Units") at a price of $0.08 per Unit for gross proceeds of up to $250,000. Each Unit will be comprised of one common share of the Company (a "Share") and one Share purchase warrant. Each warrant (a "Warrant") will entitle the holder to purchase one Share at a price of $0.13 per Share for a period of 12 months from the date the Warrant is issued. The Warrant is callable, at the option of the Company, any time after four months from the date of close of the Offering in the event the Company's Shares trade at or above $0.20 per Share for any 20 out of 30 consecutive trading days.
Certain persons may assist the Company by introducing potential subscribers for the Offering and, subject to compliance with applicable legislation, will be entitled to receive a finder's fee, payable in cash and share purchase warrants, as permitted by law.
The Company understands that certain directors, officers and insiders of the Company will participate in the Offering, which is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The securities issued will be subject to a hold period of four months and one day.
The net proceeds of the Offering will be used for the Company's research and development program and for working capital purposes.
About Kane Biotech Inc.
Kane Biotech is a biotechnology company engaged in the development of products to prevent and disperse biofilms. Biofilms develop when bacteria and other microorganisms form a protective matrix that acts as a shield against attack. When in a biofilm, bacteria become highly resistant to antibiotics, biocides, disinfectants, high temperatures and host immune responses. This resiliency contributes to human health problems such as recurrent urinary tract infections, medical device associated infections and tooth decay.
Kane Biotech uses patent protected technologies based on molecular mechanisms of biofilm formation/dispersal and methods for finding compounds that inhibit or disrupt biofilms. The Company has evidence that these technologies have potential to significantly improve the ability to prevent and/or destroy biofilms in several medical and industrial applications.
Caution Regarding Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, our anticipated future operating results, and can, in some cases, be identified by the use of words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.
These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: Kane's early stage of development, lack of product revenues and history of operating losses, uncertainties related to clinical trials and product development, rapid technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, supply of raw materials, income tax matters, management of growth, partnerships for development and commercialization of technology, effects of insurers' willingness to pay for products, system failures, dependence on key personnel, foreign currency risk, risks related to regulatory matters and risks related to intellectual property and other risks detailed from time to time in Kane's filings with Canadian securities regulatory authorities, as well as Kane's ability to anticipate and manage the risks associated with the foregoing. Kane cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on Kane's forward-looking statements to make decisions with respect to Kane, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
These risks and uncertainties should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Kane cannot provide assurance that actual results will be consistent with these forward-looking statements. Kane undertakes no obligation to update or revise any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: Kane Biotech Inc. Gord Froehlich President & Chief Executive Officer 204-477-7592 204-453-1314 (FAX) ir@kanebiotech.com www.kanebiotech.com
Released November 2, 2010