Dimethaid announces pricing of unit financing
TORONTO, Nov. 8 /CNW/ - Pharmaceutical developer Dimethaid Research Inc.
(TSX: DMX) has priced its proposed offering of units, first announced on
October 28, 2004. The company expects the proposed offering will amount to
11,000 units at a price of $1,000 Cdn each. The company will also pay Dr. F.
W. Kuhne 4,000 units to satisfy obligations arising from the May 2002 purchase
of Oxo Chemie A.G. The proposed offering is subject to regulatory clearance
and the satisfaction of customary conditions.
Each unit will consist of one 5% convertible, unsecured debenture in the
principal amount of $1,000 Cdn, maturing on or about November 16, 2009, plus
approximately 1,667 common share purchase warrants. At any time prior to
maturity, holders may convert debentures into common shares at a price of
$0.30 per share; the conversion price for debentures purchased by Dimethaid
directors or officers will be set at $0.39 per share. Each warrant allows
holders to acquire, at no additional charge, one common share at an exercise
price of $0.45 until on or about November 16, 2007, or $0.48 until on or about
November 16, 2009. The offering is expected to close on or about November 16,
2004.
A syndicate led by Research Capital Corporation, and including McFarlane
Gordon Inc., is underwriting the offering. Under the proposed offering,
Dimethaid has granted the underwriters an option to purchase up to 4,000
additional units, on the terms set out above, until 48 hours prior to closing.
If exercised in full, the company will receive another $4 million.
In connection with the transaction, Dimethaid will also issue
compensation warrants, on the above warrant terms, entitling the underwriters
to purchase 5.5 million common shares, or if the underwriters' option is fully
exercised, a total of 7.5 million common shares.
Dimethaid expects to file a final short form prospectus with the Canadian
Securities regulatory authorities. The prospectus, along with referenced
documents, will be posted on the SEDAR Web site at www.sedar.com. Printed
copies will be available from the underwriters.
The units and their underlying securities have not been, and will not be,
registered under U.S. securities laws, and absent registration or an
applicable exemption, may not be offered or sold within the United States or
to a U.S. person.
Dimethaid intends to use the net proceeds from the offering to cover
restructuring and severance costs, to repay current obligations, and to fund
clinical trials and general corporate activities. |
