Wednesday, 10 June 2009

Med BioGene Announces Closing of First Tranche of Private Placement and Appointment of New Board Member

MED BIOGENE INC. (MBI:TSX-V)
Basic shares: 41 million
Fully diluted: 63 million

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Late Friday, Med BioGene announced the closing of the first tranche of its non-brokered private placement through the issuance of 15,423,488 units for gross proceeds of $1,233,879.

Berkeley Capital Corp. II ("Berkeley"), a capital pool company (TSX VENTURE: BIZ.P), participated in the private placement as lead order. Berkeley purchased $620,600 of units, representing all of its available cash reserves after payment of expenses related to the Qualifying Transaction.

As part of Berkeley’s investment, concurrent with the closing of this first tranche of the private placement, MBI appointed Kevin K. Rooney, a current director of Berkeley, as a director of MBI.
MBI expects to close the second and final tranche of its private placement later in June.

About Med BioGene’s current non-brokered private placement

Each unit was issued at a price of $0.08 and consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share at a price of $0.10 for a period of 24 months, subject to the acceleration by MBI of the expiration of the warrants if the closing price of the common shares on the TSX Venture Exchange is greater than $0.30 for twenty or more consecutive trading days.