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VICTHOM ANNOUNCES $18 MILLION FINANCING
Quebec City, Quebec, March 10, 2005 - Benoit Côte, Chairman and Chief Executive Officer of Victhom Human Bionics Inc., Victhom or the Company (TSX: VHB), is pleased to announce that Victhom, based on indications received from investors, will complete a private placement financing of approximately $18 million. A syndicate of Agents led by Dundee Securities Corporation and including GMP Securities Ltd. and National Bank Financial Inc. was retained by Victhom to complete the financing. The financing is expected to close on March 17, 2005.
Pursuant to the terms of the private placement, Victhom will be issuing convertible debentures (the Debentures) for a principal amount of approximately $18 million, maturing on March 17, 2010. The $1,000 face value Debentures are unsecured obligations of Victhom, have a coupon of 7.00% and are convertible into common shares of Victhom at a price of $1.45 per common share, which represents a premium of 23% to yesterdays market closing price on the TSX. The Debentures pay interest semi annually and can be paid in cash or common shares at Victhoms option. Purchasers of the Debentures are also receiving warrants (the Warrants) for 50% of the number of common shares that would be issued if the Debentures were fully converted. Each Warrant is exercisable at $1.60 per common share for a period of 5 years from the closing date. Assuming the conversion of all the Debentures and the exercise of all the Warrants, Victhom would issue approximately 19 million common shares representing approximately 38% of its currently issued and outstanding common shares. Therefore, this transaction requires shareholder approval in accordance with the rules of Toronto Stock Exchange. Victhom relied upon the exemption described in subsection 604 (d) of the TSX Company Manual to obtain written consents from a majority of its shareholders.
Victhom is currently in an excellent position to support its technological and commercial development and is pleased that it has attracted more than 90% of the funds from this financing from US institutional investors. Victhom has achieved all of the objectives it set during its last financing round in April 2004 and its bionic leg has now reached the marketing phase. Victhom has also made certain strategic acquisitions and signed license agreements that have today allowed Victhom to enter a second major phase of value creation, explained Mr. Côte. By investing in Victhom, the investors,are acknowledging the soundness and potential of our development strategy. In the bionic prosthetic sector, our technological platform has proven itself, and our efforts are now turning to revenue generation and the development of new applications with Össur, our partner in this domain. The financing announced today will accelerate the development of the Bionic Closed Loop System (CLS) platform, the groundbreaking technology of our NeuroBionix business unit, and will spur the development of business partnerships in the applied bionic field of the neurotechnology sector.
About Victhom
Victhom specializes in the development and commercialization of bionic devices aimed at improving the quality of life of individuals suffering from physical dysfunctions. The Company has 76 employees and three business units: BioTronix, NeuroBionix and MetoBionix.
* Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Sources:
Victhom Human Bionics Inc.
For more information:
Benoit Côte
President and CEO
Victhom Human Bionics Inc.
Phone: (418) 872-5665, ext. 103
benoit.cote@victhom.com
Benoit Chotard
CFO
Victhom Human Bionics Inc.
Phone: (418) 872-5665, ext. 106
benoit.chotard@victhom.com
Frédéric Tremblay
HKDP
Phone: (514) 395-0375, ext. 234

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