AdvanSource Biomaterials Completes $100,000 Short-Term Financing with Shareholders and Management

  AdvanSource Biomaterials Completes $100,000 Short-Term Financing with
  Shareholders and Management

Business Wire

WILMINGTON, Mass. -- August 27, 2013

AdvanSource Biomaterials Corporation (OTC Markets OTCQB: ASNB), a leading
developer of advanced polymer materials for a broad range of medical devices,
today announced the closing of a short-term debt financing transaction on
August 22, 2013. The Company entered into Promissory Notes in the aggregate
principal amount of $100,000 (the “Notes”) with three long-standing
shareholders and the Company’s chief executive officer and chief financial
officer (the “Investors”). The Notes have a six-month term and bear interest
at the rate of 1.75% per month. In lieu of cash payment of interest, the
Investors chose to receive Warrants exercisable into an aggregate 435,000
shares of the Company’s common stock. The Warrants have a one-year term and
are exercisable at a 150% premium over the closing price of the Company’s
common stock as of August 21, 2013, or $0.075 per share. The Notes are secured
by accounts receivable from undisclosed customers. Other than legal fees of
approximately $5,000, the Company paid no other transaction costs.

Michael Adams, AdvanSource’s CEO and President, stated, “We are pleased that
the shareholder Investors, who have been loyal and supportive of the Company
for many years, along with members of management, have come together to
provide working capital that will facilitate the Company’s efforts to meet
production requirements on significant purchase orders recently received from
undisclosed customers. The Company expects to deliver on these purchase orders
at regular intervals throughout the remainder of calendar 2013. The
shareholder Investors worked closely with us to structure the most
cost-effective transaction that would ensure the maximum amount of proceeds to
be used for working capital purposes.

Over the past several years, we have been executing on a plan to gain
recognition of AdvanSource’s technical expertise and product innovation in the
development, manufacture and delivery of advanced polymer materials to medical
device manufacturers throughout the world. We are appreciative of the
Investors’ vote of confidence as evidenced through this financing
transaction.”

About AdvanSource Biomaterials Corporation

AdvanSource Biomaterials Corporation manufactures advanced polymer materials
providing critical characteristics in medical device design and development.
These biomaterials are used in devices designed for treating a broad range of
anatomical sites and disease states. AdvanSource’s business model leverages
its proprietary materials science technology and manufacturing expertise to
expand its product sales and royalty and license fee income. More information
about AdvanSource is available at its website: www.advbiomaterials.com.

Forward-Looking Statements

AdvanSource Biomaterials Corporation believes this press release contains
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are based on
management’s current expectations and are subject to risks and uncertainties
that could cause results to differ materially from the forward-looking
statements. For further information on such risks and uncertainties, you are
encouraged to review the Company’s filings with the Securities and Exchange
Commission, including its filings on Forms 10-K and 10-Q. The Company assumes
no obligation to update any forward-looking statements as a result of new
information or future events or developments, except as required by law.

Contact:

For AdvanSource Biomaterials Corporation
David Volpe, CFO, 508-523-3141
david@clvllc.com
 
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