Biocure Enters Into Land Purchase Agreement
Vancouver, British Columbia – December 18, 2017 – Biocure Technology Inc. (formerly Gravis Energy Corp.) (CSE: CURE) (the “Company” or “Biocure”) is pleased to announce that on December 12, 2017 the company’s subsidiary, Biocurepharm Corporation (“BP Korea”) entered into a land purchase agreement (the “Agreement”) with Korea Land & Housing Corporation (“KLHC”), a state-run land and housing development company in Korea, for the acquisition of a 6,060m2 industrial usage parcel. The acquisition cost for the land is KRW2,813,950,000 (the “Purchase Price”) (approximately C$3,317,647.05 utilizing an exchange rate of C$0.001179/1KRW, Dec. 12, 2017, Bank of Canada).
On the execution of the Agreement, BP Korea paid 10% of the Purchase Price, being KRW 281,395,500 (approximately CDN$331,765). The balance of the Purchase Price is payable in six substantially equal installments of approximately KRW 422,000,000 (approximately CDN$663,350) every six months commencing on Jun. 12, 2018 until Dec. 12, 2020.
The payment schedule, including applicable interest payments due, is as follows;
|Classification||Due date||Installment Principal||Installment Interest||Amount to be paid||Balance outstanding|
The purpose of the land purchase is provide for manufacturing facilities of the Company’s biosimilar products as well as CAR T-Cell products under the previously announced joint venture Pharos Vaccine Inc (see the Company’s news release dated December 4, 2017). KLHC plans to complete land formation work by the end of 2019 with architecture design and construction for the manufacturing facilities following.
The land is a part of the International Science Business Belt (the “ISB Belt”), specially zoned by the Korean Ministry of Science and ICT (Information, Communication, Technology)(MSICT). MSICT receives and reviews all applications from companies who would like to acquire space in the ISB Belt approves those it considers qualified. Companies selected by MSICT are permitted to acquire the lands at a discount of approximately half the price of the similar lands in the vicinity.
BP Korea plans to apply for a loan from a Korean local bank to fund the Purchase Price remaining to be paid pursuant to the payment schedule. BP Korea anticipates it will be able to access policy funds which would allow the Company to pay interest only for the first three years and principal for the next five years. The Company anticipates it will need to raise additional funds to meet its ongoing business objectives, including the purchase of the land, in the second quarter of 2018.
Dr. Sang Mok Lee, a CEO & President of the Company stated, “We are excited to have been qualified and selected to acquire the land from the International Science Business Belt designed by MSICT at the lowest cost possible. This acquisition will give us momentum to expedite the commercial production of the key products we are working on.”
Biocure is a South Korean based Bio Pharmaceutical company specializing in the development and potential commercialization of biosimilar pharmaceutical products. Biocure is in the process of clinical trials of five major biosimilar products in South Korea, including Interferon Beta 1b, Filgrastim and Ranibizumab. Interferon Beta 1b is used for treating relapsing forms of multiple sclerosis (“MS”) Filgrastim is used to treat neutropenia, a lack of certain white blood cells caused by bone marrow transplants, chemotherapy, and other conditions. Ranibizumab is used for treating macular degeneration. It is also used to treat a type of eye problem known as macular edema, as well as certain eye problems caused by diabetes. Biocure is also developing a foot and mouth disease vaccine, a hair growth production product and a breast cancer detection kit.
ON BEHALF OF THE BOARD OF DIRECTORS
/s/ “Sang Mok Lee”
CEO and Director