According to the company, this non-dilutive financing is the next logical step after the $2.5 million equity financing by Innovatech Quebec, Lodial Capital, Fonds BioInnovation and Benoit Cote’s holding company in March 2007. This should increase the visibility of Biotanika new products, Dolorox, Artriphen and Coolsens in pharmacy chains and natural health products stores in Canada.
As part of this financing, Biotanika will receive $200,000 in repayable funding. This amount adds to working capital loans totaling $1.3 million including $500,000 by Business Development Bank of Canada, $500,000 by Investissement Quebec and Desjardins and $300,000 in private investments.
This financial contribution is awarded under Canada Economic Development’s Business and Regional Growth program, the aim of which is to strengthen the conditions conductive to the sustainable growth of Quebec’s regions and small and medium-sized enterprises, helping them improve their performance and innovate.
Benoit Cote, president and CEO of Biotanika, said: “With this financing, we will reach milestones that are essential to our development and implement an orderly corporate transition before penetrating the American market in 2009 and soliciting other investments this fall.”