BioCure Receives Loan Approval for its Land Purchase
June 14, 2018
Vancouver, British Columbia – June 14, 2018 – Biocure Technology Inc. (formerly Gravis Energy Corp.) (CSE: CURE) (the “Company” or “Biocure”) is pleased to announce that its wholly owned subsidiary Biocurepharm Corporation (“BP Korea”) has been approved for a land purchase loan by Industrial Bank of Korea.
As announced on December 12, 2017 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$3,390,810 utilizing an exchange rate of C$0.001205/1KRW, June 12, 2018, Bank of Canada).
On the execution of the Agreement, BP Korea paid 10% of the Purchase Price, being KRW 281,395,500 (approximately CDN$339,081). The balance of the Purchase Price is payable in six substantially equal installments of approximately KRW 422,000,000 (approximately CDN$508,510) every six months commencing on June. 12, 2018 until Dec. 21, 2020.
|Amount to be paid||Balance outstanding|
The loan terms provided by Industrial Bank of Korea are as follows;
Interest Rate of 3.3% per annum (Variable Rate)
- The loan amount shall consist of five installments of KW330,000,000 (approximately CDN$397,650) and the sixth installment of KW350,000,000 (approximately CDN$421,750), starting from June 12, 2018, where the balance shall be covered by the Company.
- The Company shall pay interest only for the first three years and principle plus interest for the following five years.
BP Korea made the first payment of KW422,555,000 on Jun. 12 with the above loan approval.
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.
The Company would also like to announce further to the news release dated May 7, 2018 it will not be moving forward on the previously announced $750,000 non-brokered private placement.
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
For further information, please contact:
Biocure Technology Inc. Telephone: 604 609-7146
Certain statements in this news release, which ar not historical in nature, constitute “forward looking statements” within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning the Company’s proposed activities under the Agreement, the Company’s ability to achieve sales, commercial or otherwise, from its products, and the expectations of the Company regarding funding payments due pursuant to the Agreement. These statements reflect management’s current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. Readers are cautioned not to place undue reliance on forward looking statements. Neither the Canadian Securities Exchange (the “CSE”) nor the Investment Industry Regulatory Organization of Canada) accepts responsibility for the adequacy or accuracy of this release.