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Biotech / Medical : Stressgen (VSE: SSB) -- Ignore unavailable to you. Want to Upgrade?

To: j bell who wrote (50)	5/26/1998 11:02:00 AM
From: don jackson	Read Replies (1) \| Respond to of 236

Well since this thread is awfully quiet, here's a press release related to some new financing. " StressGen Biotechnologies Corp. (TSE:SSB) today announced it has entered into a private placement agreement to issue approximately 7,030,303 special warrants at $3.30 (US $2.27 for United States investors) per special warrant for gross proceeds of approximately $23.2 million. The $13.2 million Canadian portion of this financing is being underwritten by a syndicate led by Nesbitt Burns Inc. and including Levesque Beaubien Geoffrion. Vector Fund Management, a prominent US fund that focuses exclusively on healthcare and the life sciences, is the lead investor in the transaction. Each special warrant is exercisable into one unit at no additional consideration. Each unit entitles the holder to receive one common share of StressGen, 0.25 of a Class A warrant and 0.5 of a Class B warrant. The Class A warrants are exercisable for a period of 24 months however, the expiry date may be accelerated in certain circumstances. The Class B warrants have a term of 60 months. This transaction is subject to approval by The Toronto Stock Exchange. There are currently 22,726,240 common shares outstanding. Upon the exercise of the special warrants there will be 29,756,543 common share outstanding. If all warrants are exercised there will be 35,029,270 common shares outstanding. The proceeds from the financing will further strengthen StressGen's capital base and will primarily be used to fund the preclinical development of HspE7, the Company's product for the treatment of cervical dysplasia (the presence of precancerous cells). These funds may also be used to support StressGen's continuing research and development efforts in other product areas and serve as general working capital. "StressGen has positioned itself to be globally competitive in its scientific domain and we are now proceeding to do the same within the finance community. This strategic financing represents an important step in an aggressive strategy to position StressGen favorably within the international finance community. We are pleased and excited by Vector's significant involvement in this offering," said Richard M. Glickman, StressGen's President and CEO. Sandra Panem, President of Vector Fund Management said, "We are delighted to support StressGen as they develop the field of stress proteins for cancer immunotherapy and other indications. The Company has assembled a portfolio of promising stress protein applications and a management team capable of developing these compounds to commercialization." Vector Fund Management, of Deerfield, IL, specializes in later-stage investments of emerging growth companies in the life sciences and healthcare arena. Closing is expected to occur on or near June 12, 1998 and is subject to customary due diligence requirements. "