Lorus enters agreement for $25-million bought deal
Lorus Therapeutics Inc LOR
Shares issued 78,751,668 Apr 19 close $3.30
Thu 20 Apr 2000 News Release
Mr. Philippe Lacaille reports
Lorus Therapeutics has entered into an agreement with a syndicate of
underwriters to issue and sell 8,333,334 common shares of Lorus
Therapeutics Inc. at a price of $3 per common share for gross proceeds of
$25-million through a bought deal. The agreement includes an option for the
underwriters to increase the issue to 13,333,334 common shares
($40-million) prior to filing the final short form prospectus and an
overallotment option of 15 per cent of the final issue size exercisable for
a 30-day period from the closing of the offering. The deal is expected to
close on or about May 2, 2000.
The syndicate is being led by HSBC Securities (Canada) Inc. and includes
Yorkton Securities Inc., TD Securities Inc. and Dominick & Dominick
Securities Inc. The transaction is subject to the receipt of all necessary
regulatory and stock exchange approvals and to the execution of definitive
documentation. As previously announced, Lorus filed a preliminary short
form prospectus with the securities commissions and similar regulatory
authorities in all Canadian provinces to qualify the issuance of the common
shares.
The proceeds provide the company with the resources to accelerate the
development of its antisense and small molecule anticancer drugs, to build
increased value in Virulizin through a pivotal phase III trial, and to
support corporate development initiatives.
"A financing at this time was the next logical step in our strategy of
building critical mass," said Philippe G. Lacaille, chairman and chief
executive officer of Lorus Therapeutics Inc. "Increased interest in the
biotech sector combined with Lorus's strong fundamentals has provided a
unique window of opportunity and enabled the company to achieve this
significant milestone. This financing allows Lorus to accelerate the
development of its diverse pipeline of novel oncology drugs."
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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