DEFINITIVE AGREEMENT WITH JAMIESON LABORATORIES
QUEBEC - JUNE 22, 2006 - Advitech inc. (TSX-V: AVI) today announced it has reached a definitive agreement with Jamieson Laboratories for the distribution of its product Dermylex™ in Canada. The agreement was finalized following the conclusion of a market test performed by Jamieson Laboratories, which had been announced on March 10, 2006. The test took place in pharmacies located in Toronto and Quebec City. ”The market test has demonstrated the definitive interest of patients in Dermylex™. The results reported during the test have been above Advitech’s and Jamieson’s expectations”, said Renaud Beauchesne, President and Chief Executive Officer of Advitech.
”We will start the introduction of Dermylex™ in Canada by the end of June and a special promotional and advertising campaign will support the product launch”, added Et Bruno, Marketing Director for Jamieson Laboratories.
This exclusive agreement for the Canadian market is valid for three years and includes minimum sales requirements for 2006 and each of the following two years.
With regard to the interim financing program announced recently, the Company advises that it has issued a new block of $100,000 convertible debentures with a private investor. Also, the Company has obtained a $100,000 loan (refundable contribution) from a government agency. The loan will finance commercialization expenses incurred by the Company in foreign countries.
As announced previously, 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 1, 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 this new block of convertible debentures, in the amount of $100,000, is part of a general placement not to exceed $600,000 in debentures ($250,000 have been issued so far) for which the Company obtained conditional approval from the TSX Ventures Exchange. Total interim financing for June has now reached $550,000, with $250,000 in debentures and $300,000 in loans.
The Company’s financial plan anticipates increased financing during the second semester of 2006.
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.
About Jamieson Laboratories
Established in 1922, Jamieson Laboratories is Canada’s largest manufacturer and distributor of advanced natural health-care products. With more than 350 employees, Jamieson’s state-of-the-art pharmaceutical manufacturing laboratories are located in Windsor, Ontario. The company is a world leader in the vitamin and nutrition industry, exporting to over 45 countries, including the USA, China, Japan, Hong Kong, Korea and Singapore. For more information, please visit the Jamieson Web site at www.jamiesonvitamins.com
Dermylex™ is Advitech’s orally administered product for mild to moderate plaque psoriasis made from a bioactive ingredient with proven clinical efficacy. On July 5, 2005, the Company reported positive results from its Phase II clinical trial 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 Dermylex™ for treating mild to moderate psoriasis. For more information please visit www.dermylex.ca
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 significantly from those projected herein.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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