Completes $15.5 million special warrants placement
Inflazyme Pharmaceuticals Ltd. ("Inflazyme" or "the Company") announced that it has completed its previously announced private placement of special warrants (the "Special Warrants"), at a price of $1.25 per Special Warrant, for total gross proceeds of approximately $15.5 million. Each Special Warrant will entitle the holder to acquire, upon exercise, one common share of the Company for no additional consideration.
The May 14 announcement follows Inflazyme's announcement of April 30, 1999 in which the Company announced that it had closed on an initial tranche of $8.0 million and expected to close on the remainder of the private placement on or about May 13, 1999.
The financing was led by the Company's existing institutional investors including Biotechnology Investments Ltd., Goldman Sachs, Royal Bank Capital Corporation and Royal Trust and included participation from the Business Development Bank of Canada, Sofinov Societe financiere d'innovation., and the Working Opportunity Fund (EVCC) Ltd.
Ian McBeath, President & CEO of Inflazyme stated, "I am pleased that this financing has been supported by our current institutional investors and we welcome as new shareholders three significant funds who are also experienced in the Canadian biotechnology industry." Mr. McBeath also noted that the net proceeds of the offering will be used to fund research & development activities not included in the Company's collaboration with Hoechst Marion Roussel, and for general corporate purposes.
The Company has undertaken to file a prospectus in British Columbia, Ontario and Quebec to qualify the issuance of the securities upon exercise of the Special Warrants and Agents Warrants. The funds held in escrow will be released to the Company if final receipts for the prospectus from the applicable securities commissions are issued and the Company's common shares are conditionally listed on The Toronto Stock Exchange ("TSE"). If receipts for the prospectus are not issued or Company's shares are not conditionally approved for listing on the TSE within 120 days of closing then each holder of the Special Warrants may elect either (a) to have the Company repurchase from funds held in escrow the Special Warrants held by that holder at a sum equal to the subscription price, together with the pro rata interest earned thereon, or (b) to acquire, without additional consideration, 1.1 Common Shares instead of one Common Share for each Special Warrant held.
The proceeds have been deposited with Montreal Trust Company. First Marathon Securities Limited acted as lead agent for the financing, while CIBC Wood Gundy Securities Inc. and RBC Dominion Securities Inc. acted as co-agents (the "Agents"). The Agents will receive cash compensation and the Company has agreed to grant compensation options entitling the Agents to purchase up to 5% of the number of common shares issued in the financing at a price of $1.25 per share.
Inflazyme Pharmaceuticals Ltd. is a Richmond, BC., Canada based biopharmaceutical company focused on the discovery, development and commercialization of drugs to treat serious inflammatory diseases such as asthma, rheumatoid arthritis, allergies, psoriasis and inflammatory bowel disease.
The statements made in this press release may contain certain forward-looking comments. Actual events or results may differ from the Company's expectations. In addition to the matters described in the press release, future actions by the U.S. Food and Drug Administration or equivalent regulatory authorities in various countries, results of pending or future clinical trials, as well as risk factors from time to time in the Company's SEC reports, may affect the actual results achieved by the Company. Exemption from registration pursuant to Rule 12g3-2(b), Reg. No. 82-2317. The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. TOLL FREE: (800) 315-3660 Jeffrey A. Bacha, Director of Corporate
Development WEBSITE: www.inflazyme.com
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