HAMILTON THORNE ANNOUNCES CLOSING OF DEBENTURES OFFERING
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BEVERLY, MA and TORONTO, Ontario – March 24, 2011 - Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of advanced laser systems for the regenerative medicine, developmental biology, stem cell research and fertility markets, today announced that it has completed its previously announced offering of 10% convertible unsecured subordinate debentures (“Debentures”) for aggregate gross proceeds of approximately US $650,000. The Debentures were denominated in Canadian dollars and will mature on August 13, 2012. The 10% per annum simple interest payable on the Debentures is to be accrued and paid only upon the earlier of maturity or conversion of the Debentures. The net proceeds from the sale of the Debentures will be used for potential product line acquisitions and in-licensing, research and development expenses and for general working capital purposes.
“This transaction shows the continued support from our existing investors, and we welcome the opportunity to add new investors as we expand further into the largest research and clinical markets. Our customers are demonstrating remarkable progress and developing treatments for today’s leading age-related diseases such as Alzheimer’s, macular degeneration and heart disease,” said Meg Spencer, Chief Executive Officer of Hamilton Thorne. “Hamilton Thorne has a robust product pipeline for 2011 and beyond. With this latest transaction, our focus will be to advance our laser technology further to the forefront of stem cell research, advanced cell biology, and cancer research markets.”
At maturity, the Debentures will convert at a 20% discount to the then volume weighted average market price, with a minimum conversion price of C$0.24 per share and a maximum conversion price of C$0.60 per share. The Debentures stipulate that, subject to the foregoing, in the event Hamilton Thorne completes an equity offering for gross process of at least C$1,500,000 (an “Equity Offering”), the Debentures will automatically convert, with a 10% discount to the Equity Offering price if the Equity Offering is completed in the first year of the Debenture and a 20% discount to the Equity Offering price if the Equity Offering is completed in the second year. The Debentures will rank pari passu with the debentures issued by Hamilton Thorne in August 2010. The completion of the private placement is subject to final acceptance by the TSX Venture Exchange.
Loewen, Ondaatje, McCutcheon Limited and All Group Financial Services Inc. received aggregate cash finder’s fees of approximately US $45,500 and an aggregate of 89,435 finder’s warrants for introducing qualified private placement subscribers to Hamilton Thorne. Each finder’s warrant is exercisable for one common share at an exercise price of C$0.50 for a period of 24 months from the closing date. All securities issued in this transaction, including securities into which they may be converted, and finder’s warrants issued to finders as part of their compensation, will be subject to a four month hold period.
About Hamilton Thorne Ltd. (www.hamiltonthorne.com)
Hamilton Thorne is a leading provider of advanced laser systems for the regenerative medicine, stem cell research and fertility markets. Hamilton Thorne's lead products, the ZILOS-tk™ and XYClone® laser systems, attach to standard inverted microscopes and operate as robotic micro-surgeons, significantly reducing time and increasing efficiency in key in-vitro fertilization, stem cell, and regenerative medical research applications. The new Staccato™ and Stiletto™ laser systems are designed to broaden the Company’s markets and offer significant advantages to developmental biology, cancer research and advanced cell biology researchers.
Hamilton Thorne’s growing customer base includes pharmaceutical companies, biotechnology companies, fertility clinics, university research centers, and other commercial and academic research establishments worldwide. Current customers include world-leading research labs such as Harvard University, MIT, Yale, McGill University, DuPont, Monsanto, Charles River Labs, Jackson Labs, Merck, Novartis, Pfizer, Oxford University, and Cambridge.
Neither the Toronto Venture Exchange, nor its regulation services provider (as that term is defined in the policies of the exchange), accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.