QUEBEC CITY – June 12, 2006 – As a follow-up to the March 2nd announcement, Advitech inc. (TSXV:AVI) today announced that the definitive agreement was signed with Cothera SAS for the French
market. An official announcement will be made this week in La Rochelle, France during a European convention on natural products. ‘’This second agreement is important to Advitech as it will generate sales in a major European market as early as the last quarter of 2006’’, said Renaud Beauchesne, President and CEO of Advitech inc.
Dominique Bourgeade, Chief Operating Officer of Cothera SAS, emphasized the innovative nature of
DermylexTM. ‘’The French market is more and more interested in products such as DermylexTM. Cotherapies
in conjunction with pharmaceutical products are steadily increasing in number and this will be
our marketing strategy for DermylexTM here in France’’.
This agreement provides for a minimum sales requirement for 2006, is exclusive until March 31, 2007,
and is renewable for an additional two-year period, contingent on reaching minimum sales objectives.
Advitech today disclosed, in keeping with the financing strategy announced at its annual general meeting,
a two-part interim financing round: a $200,000 participative non-guaranteed loan from the Centre
Québécois de Valorisation des Biotechnologies (CQVB) and convertible debentures totalling $150,000
from private investors.
The CQVB loan, with an interest rate of 12% over a five-year term includes a royalty clause on sales and
a twelve month moratorium on capital and interest payments. The loan will be paid out in three
instalments before September 30th 2006 providing Advitech inc. meets stipulated requirements.
Debentures may be converted into Company common shares at $0.15 per common share until
May 31, 2007 and at $0.20 per common share from June 1, 2007 to May 31, 2008. The debenture capital
is refundable on June 1, 2011 and the interest at 12% is to be paid monthly as of January 1st 2007.In
accordance with TSX Venture Exchange policies, the conversion will be increased by 10% each
subsequent year. The underlying shares of the debentures are subject to resale restrictions for 4 months
following issuance of the debenture.
The placement of convertible debentures is part of a general placement of not to exceed 600,000$ for
which the Company has obtained conditional approval from the TSX Ventures Exchange and which the
Company will carry out in the near future.
The Company’s financial plan anticipates increased financing during the second semester of 2006.
Dermylex™ is Advitech’s orally administered product for mild to moderate plaque psoriasis. Dermylex™ is
made from Advitech’s XP-828L, a bioactive ingredient with proven clinical efficacy. On July 5, 2005, the
Company reported positive results from its Phase II clinical trial of XP-828L for treating mild to moderate
psoriasis. The 112-day, multi-center, double blind, placebo-controlled study, involving 84 patients,
confirmed the efficacy and excellent safety profile of XP-828L for treating mild to moderate psoriasis.
Advitech is a life science and technology company specializing in the development of clinically tested
bioactive ingredients for chronic immune-mediated inflammatory diseases (IMID), such as psoriasis and
inflammatory bowel diseases. Advitech’s common shares are listed on the TSX Venture Exchange under
the symbol AVI. The number of common shares outstanding is 54,799,818.
This press release contains forward-looking statements which reflect the Company's current expectations
regarding future events. The forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.