Hello Dr. -------,

 

There are four separate loans and advances totalling $25M that relate to the construction of the VMC:

 

1.       Ontario Ministry of Economic Development & Trade - $10M – interest-free until September, 2013, repayable over 5 years starting in September, 2014
2.       Agriculture & Agri-Food Canada - $5M – interest-free for entire term, repayable over 5 years starting in September, 2014
3.       Industry Canada (ITO) - $5M, repayable based on 2.5% royalty on sales of Econiche
4.       BDC term loan- $5M –currently being repaid at $20K/month
 

None of these repayment schedules has anything to do with when the plant becomes production-ready or validated.

 

We have been working on developing contracts for the production and sale of Econiche (and other products) for some time, and progress is being made. More information will become available as such opportunities are solidified.

 

Sincerely,

Jennifer

 

Jennifer Shea

Vice-President, Communications, Investor & Government Relations

Bioniche Life Sciences Inc.

P.O. Box 1570, 231 Dundas St. E.

Belleville, Ontario

Canada  K8N 5J2

Phone: 613-966-8058 ext. 1250

Mobile: 613-391-2097

Fax: 613-966-4177

Email: [email protected]

www.Bioniche.com