SYNSORB Biotech Inc. Completes $15.75 Million Equity Financing
CALGARY, ALBERTA--
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO
UNITED STATES NEWSWIRE SERVICES.
SYNSORB Biotech Inc. ("SYNSORB") (TSE:SYB, NASDAQ: SYBB) announced
today that the Corporation has closed a previously announced
public offering of common shares. This offering raised gross
proceeds of $12,425,000 through the issuance of 7,100,000 common
shares at a price of $1.75 per share. In addition, $3,325,000 was
raised under the participation option for existing shareholders
through the issuance of 1,900,000 common shares, also at a price
of $1.75 per share.
The offering, pursuant to a final prospectus filed with the
securities commissions in all provinces and territories was
underwritten by TD Securities Inc., and included HSBC James Capel
Canada Inc., Canaccord Capital Corporation, Dundee Securities
Corporation, and Loewen, Ondaatje, McCutcheon Limited. The
Underwriters can purchase up to 1,350,000 shares at $1.75 through
an over-allotment option provided as part of the financing for a
period expiring in 60 days.
Net proceeds of the offering will be used primarily for clinical
trials relating to SYNSORB Pk(R) and SYNSORB Cd(R), and also for
operation of the manufacturing facility, other research and
development expenses and for general corporate purposes.
The common shares that were offered and sold pursuant to the firm
underwritten portion of the offering have not been registered
under the United States Securities Act of 1933, as amended, and
may not be offered or sold in the United States absent
registration under such Act or compliance with an applicable
exemption from registration.
SYNSORB Biotech Inc. is dedicated to accelerated drug development
from the acquisition of promising compounds emerging from basic
research through clinical development, and ultimately to providing
channels to market for new discoveries. Headquartered in Calgary,
SYNSORB currently has two products in late stage clinical
development, SYNSORB Pk(R) for the prevention of HUS and the
treatment of verotoxigenic E. coli (VTEC) infections (including
O157:H7), and SYNSORB Cd(R) designed to treat recurrent
antibiotic-associated diarrhea (CDAD). SYNSORB has additional
compounds in pre-clinical development, including potential cancer
treatments and novel antibiotics, with inflammation and
anti-virals targeted in the Company's research and development
program.
This release contains certain forward-looking statements which
involve known and unknown risks, delays, uncertainties and other
factors not under the Company's control which may cause actual
results, performance or achievements of the Company to be
materially different from the results, performance or expectations
implied by these forward-looking statements. These factors include
results of current or pending clinical trials, actions by the
FDA/HPB and those factors detailed in the Company's registration
statement on Form 20 F filed with the Securities and Exchange
Commission.
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FOR FURTHER INFORMATION PLEASE CONTACT:
SYNSORB Biotech Inc.
Dr. David Cox
President & CEO
(403) 283-5900
(403) 283-5907 (FAX)
or
The Equicom Group
Jason Hogan
Investor Relations
(416) 815-0700 ex 222
(416) 815-0080 (FAX)
United States: 800-385-5451
or
SYNSORB Biotech Inc.
Mr. Doug Froom, Vice President, Business Development
For product licensing inquiries
(403) 283-5900
(403) 283-5907 (FAX)
synsorb.com
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