Ondine Receives Letters of Intent for Sale of Majority Interest in Sinusitis Subsidiary

 
TIDMOBP 
 
Ondine Receives Letters of Intent for Sale of Majority Interest in Sinusitis Subsidiary 
FOR:  ONDINE BIOPHARMA CORPORATION 
 
TSX, AIM SYMBOL:  OBP 
 
July 7, 2010 
 
Ondine Receives Letters of Intent for Sale of Majority Interest in Sinusitis Subsidiary 
 
Includes Funding for Sinuwave Technologies Corp. 
 
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2010) - Ondine Biopharma Corporation 
(TSX:OBP)(AIM:OBP) today announced that it has entered into non-binding letters of intent (the "LOIs") 
with a syndicate of private equity investors based in Europe to purchase a majority position in 
Ondine's to be formed subsidiary, Sinuwave Technologies Corporation ("Sinuwave"), which will be 
dedicated to the development of photodisinfection solutions for the chronic sinusitis market. Subject 
to the execution of definitive agreements and regulatory approvals, the proposed transaction would 
provide Ondine with continued economic benefits from the sinusitis application as well as cash flows 
to be used for the development of expanded applications of the Company's photodynamic platform 
technologies. 
 
Under the terms of the LOIs, the syndicate would receive a 70% ownership interest in Sinuwave in 
return for an upfront cash payment to Ondine of US$600,000 and an initial private placement into 
Sinuwave of US$500,000. The syndicate would also commit to provide Sinuwave Technologies Corporation 
with additional funding of up to US$1 million by way of equity purchases over a 2 year period in 2 
tranches. In addition, the syndicate would have the right to invest a further $1 million in Sinuwave 
on exercise of share purchase warrants. 
 
The parties contemplate that Ondine would develop and manufacture any products created under this 
initiative, and would be entitled to ongoing management consulting and product development fees as 
well as royalties and manufacturing margins. Ondine would also be entitled to additional payments 
totaling up to US$250,000 based on the achievement of certain regulatory milestones. 
 
"This proposed transaction will enable us to focus on this important new application of our platform 
photodisinfection technology," said Carolyn Cross, Chairman & CEO of Ondine Biopharma Corporation. 
"The proven antimicrobial and anti-inflammatory benefits of Ondine's non-antibiotic photodisinfection 
technology have the potential to provide substantial relief to patients who suffer from chronic 
sinusitis. Sinusitis represents a very large market, affecting over 43 million people in North America 
alone. There are over 450,000 patients in North America for whom sinus surgeries and antibiotics have 
been unsuccessful. As global leaders in photodisinfection, we have the technology and the expertise to 
create a new class of products that we believe can better serve these patients. By establishing a 
separate company dedicated to the chronic sinusitis application and entering into the above 
transaction, we expect to accelerate the development programs and commercialization opportunities for 
this important new market." 
 
Sinuwave Technologies Corporation is being established to develop and commercialize photodisinfection 
products for the sinusitis market. It will license all relevant Ondine intellectual property and know- 
how for this application, including technology internally developed over the past ten years and 
technology obtained in Ondine's December 2009 acquisition of Advanced Photodynamic Technologies Inc. 
("APT"). Sinuwave Technologies Corporation will leverage the product development, clinical and 
regulatory experiences of both the Ondine and APT teams. 
 
About Ondine Biopharma Corporation 
 
Ondine is developing non-antibiotic therapies for the treatment of a broad spectrum of bacterial, 
fungal and viral infections. The Company is focused on developing leading edge products utilizing its 
patented light-activated technology. Photodisinfection provides broad-spectrum antimicrobial efficacy 
without encouraging the formation and spread of antibiotic resistance. The Company is based in 
Vancouver, British Columbia, Canada, with a research and development laboratory in Bothell, 
Washington, USA. 
 
For additional information, please visit the Company's website at: www.ondinebiopharma.com. 
 
Forward-Looking Statements: 
 
Certain statements contained in this release containing words like "believe", "intend", "may", 
"expect" and other similar expressions, are forward-looking statements that involve a number of risks 
and uncertainties. Factors that could cause actual results to differ materially from those projected 
in the Company's forward-looking statements include the following: market acceptance of our 
technologies and products; our ability to obtain financing; our financial and technical resources 
relative to those of our competitors; our ability to keep up with rapid technological change; 
government regulation of our technologies; our ability to enforce our intellectual property rights and 
protect our proprietary technologies; the ability to obtain and develop partnership opportunities; the 
timing of commercial product launches; the ability to achieve key technical milestones in key products 
and other risk factors identified from time to time in the Company's public filings. 
 
The LOIs are non-binding and there can be no assurances that the transaction contemplated by the LOIs 
will be consummated. The transaction is subject to, among other things, negotiation of a definitive 
agreement and the Company receiving the usual regulatory approvals. 
 
FOR FURTHER INFORMATION PLEASE CONTACT: 
 
Ondine Biopharma Corporation 
Carolyn Cross 
Chairman and Chief Executive Officer 
[phone] 
[e-mail] 
www.ondinebiopharma.com 
 
OR 
 
Canaccord Genuity Limited 
Ryan Gaffney 
Nominated Adviser 
[phone] 
 
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of 
this release. 
 
 
Ondine Biopharma Corporation