TORONTO, April 22, 2013 /CNW/ - Today a group of concerned shareholders of
Bioniche Life Sciences Inc. ("Bioniche") led by William (Bill) M. Wells,
former Chief Executive Officer of Biovail Corporation, and Greg Gubitz, former
General Counsel and Senior Vice President of Corporate Development at Biovail
Corporation announced that they have sent the following letter to the Bioniche
board of directors:
VIA E MAIL
April 19, 2013
To: James Rae
Chairman, Bioniche Life Sciences Inc. ("Bioniche")
We are writing this open letter representing a group of concerned shareholders
that together own in excess of 5% of Bioniche's outstanding common shares.
These shares were acquired for investment purposes.
As you know, members of our group executed the extremely successful turnaround
of Biovail Corporation and subsequent merger with Valeant Pharmaceuticals
International Inc., thereby creating billions of dollars in shareholder value
for Biovail's shareholders. Together we have decades of experience in the Life
Sciences industry and in fixing troubled businesses. Our track record of
creating value for shareholders is clear.
Just as clear is the dismal record of Bioniche's management and board of
destroying shareholder value. Bioniche has a consistent history of annual
losses, with not one year of positive earnings - ever. The share price has
lost over 96% of its value since 1996. The following chart is a clear
demonstration of the record of Bioniche's management and board.
Bioniche History of Annual Losses and Share Price Decline.pdf
Despite this obvious failure, the same CEO has managed the company throughout
this period. The board has failed in its duty. Bioniche's long suffering
shareholders deserve better.
Our group first contacted you in the summer of 2012 to offer our advice and
provide tangible solutions to fix the company. We believed then and believe
now that there is considerable potential for Bioniche to become a very
successful Canadian Life Sciences company. Despite multiple contacts with the
management and board, our best efforts to help Bioniche were stalled and
Bioniche today is in dire straits. The company is unfocused, over indebted,
burning cash and running out of reserves. The track record of management and
the board indicates that preserving existing shareholder value, much less
generating gains in shareholder value, is unlikely. We now believe the only
way to resolve this impasse and generate the action Bioniche desperately needs
is to engage in an open dialogue with all shareholders. We intend to publish
this letter in order to begin that dialogue.
As significant shareholders of Bioniche we are aware of our rights and the
various steps available to us to ensure no further value is destroyed at the
company. We caution the board not to take any further measures to entrench the
board or management or impair shareholder value in violation of their
fiduciary duties and responsibilities to shareholders.
William (Bill) M. Wells - former CEO Biovail Corporation
Greg Gubitz - former General Counsel and Senior Vice President of Corporate
Development Biovail Corporation
Greg Gubitz 416.624.6568 firstname.lastname@example.org
Bill Wells email@example.com
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SOURCE: William (Bill) M. Wells and Greg Gubitz
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