ProQuest Investments acquires common shares of BioSyntech, Inc.

MONTREAL , Jan. 4 /CNW Telbec/ - ProQuest Investments III, L.P., a U.S.-based private venture capital fund, announces that, upon BioSyntech, Inc. ("BioSyntech") exercising its option to issue 8,265,921 common shares to its debentureholders in payment of the $739,800 of interest payable on December 31, 2009 on the $12,330,000 principal amount outstanding Subordinated Secured Convertible Debenture Series issued in 2008, convertible (at a price of $0.20 per share) into common shares (the "2008 Debentures"), it has received a total of 2,011,173 common shares of BioSyntech in payment of the $180,000 interest payable on $3,000,000 principal amount of 2008 Debentures held by ProQuest.

As a result of this issuance and as of the date hereof, ProQuest holds an equivalent of 18,430,172 common shares representing approximately 16.09% of the total issued and outstanding common shares of BioSyntech on a non-diluted basis, 18,750,421 common share purchase warrants, $3,000,000 principal amount of 2008 Debentures, convertible (at a price of $0.20 per share) into 15,000,000 common shares, $280,000 principal amount of a Subordinated Secured Convertible Debenture Series 2009-1, convertible (at a price of $0.11 per share) into 2,545,455 common shares, and $956,310 principal amount of a Subordinated Secured Convertible Debenture Series 2009-2, convertible (at a price of $0.11 per share) into 8,693,727 common shares. In the event that the debentures held are fully converted and that all of the warrants held are fully exercised by ProQuest and that no other convertible securities are converted or exercised, these holdings would represent approximately 39.76% of the total issued and outstanding common shares of BioSyntech as at December 31, 2009 .

The 2008 Debentures were acquired pursuant to a public offering. The short form prospectus dated July 7, 2008 describing the offering is available electronically at www.sedar.com.

The debentures and warrants were acquired for investment purposes only. ProQuest may from time to time acquire additional securities of BioSyntech, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its positions.

For more details about ProQuest and its investments, please visit our website at www.proquestvc.com.

For further information: Joyce Tsang, Ph.D., ProQuest Investments, [phone], fax: [phone]