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Tm Bioscience Completes Financing of Unsecured Subordinated Debentures and Warrants for Proceeds of $6.24 Million CDN

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Tm Bioscience Corporation has announced that it has completed a private placement financing of unsecured subordinated debt (the "Debentures"), together with common share purchase warrants (the "Warrants") of the Company, for total gross proceeds to the Company of $6.24 million CDN.

The Debentures carry an interest rate of 11% per annum with interest payable monthly in arrears and principal to be repaid in full at either 12 months from the closing date or within 30 days in the event of any cash infusion that results in proceeds to the Company of $15 million.

Should the Company receive any cash infusion of less than $15 million or more it will repay a pro-rata portion of the Debentures.

The Company has the option to repay the Debentures at any time prior to 12 months from the closing date without penalty. 

The Debentures are subordinated in all respects to the Company's existing secured convertible note and related security and contain customary covenants.

Investors will receive 250 Warrants per $1,000 principal amount of the Debentures purchased. 

Each Warrant will be exercisable for one common share of the Company at an exercise price of $1.15 for the period expiring five years from the closing date. 

The Warrants are subject to customary restrictions on resale under applicable securities laws.

Proceeds from the financing will be used for the advancement of the Company's pipeline of genetic tests and for general working capital purposes. The transaction is subject to final approval by the TSX.