Vasogen arranges $17-million bought-deal financing
Vasogen Inc VAS
Shares issued 46,490,000 May 6 2002 close $5.390
Tuesday May 7 2002 News Release
Mr. David Elsley reports
VASOGEN ANNOUNCES $17 MILLION BOUGHT DEAL
Vasogen has entered into an underwriting agreement on a bought-deal basis with a syndicate led by Research Capital Corporation for the issuance and sale of 3.5 million common shares at a price of $4.85 per share, for total gross proceeds of approximately $17-million. Vasogen will today file a preliminary short-form prospectus in the provinces of Ontario, Quebec, Alberta, and British Columbia in connection with the offering. Closing is scheduled to take place on or about May 28, 2002.
The underwriter may, up to 48 hours prior to closing, increase the size of the issue by an additional 1.65 million common shares at the same price.
Vasogen has granted the underwriter an overallotment option, exercisable until 30 days following closing, to purchase up to an additional 15 per cent of the number of common shares issued on closing on the same terms and conditions noted above. The company has also granted the underwriter a compensation option, exercisable until Nov. 24, 2003, to acquire 250,000 common shares at $5.00 per share.
"On Feb. 28, 2002, Vasogen released positive clinical results in advanced congestive heart failure patients (NYHA Class III and IV), which have positioned the company to accelerate development timelines in this indication by as much as two years," said David Elsley, president and chief executive officer of Vasogen. "Based on these successful results, Vasogen intends to pursue an accelerated timetable for a CHF pivotal trial in support of marketing approval. This deadly condition affects five million Americans and costs the health care system more than $34-billion annually."
The net proceeds of the offering together with current cash resources will be used to finance accelerated clinical development in congestive heart failure, as well as the company's continuing research and development programs, and general operations. Vasogen's cash position at April 30, 2002, taking into account the net proceeds of the 3.5-million-common-share issue, is projected to be approximately $45-million.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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