Chromos says underwriters pull out of planned C$4 million placement

By Laura Lutz

Des Moines, April 3 - Chromos Molecular Systems Inc. said that the underwriters have withdrawn from the company's previously announced C$4 million private placement of units.

A syndicate led by Dundee Securities Corp. and including Canaccord Capital Corp. had been expected to underwrite the deal.

The underwriters' decision was primarily due to the decline in the price of the company's shares and the end of its collaboration discussions with a U.S. biotechnology company, according to a news release issued by Chromos on Tuesday.

At close on Tuesday, the company's shares had lost about 73.1% since the deal priced on March 21 (Toronto: CHR). The closing price on March 21 was C$0.13. On Tuesday, the shares closed down 2 cents, or 36.36%, at C$0.035.

The company shares lost 2 cents, or 36.36%, to close at C$0.035 on Tuesday. The shares closed at C$0.13 on March 21, when the deal priced.

The company had planned to sell 40 million units of one share and one warrant at C$0.10 per unit. Each whole warrant will be exercisable at C$0.15 for five years.

Based in Burnaby, B.C., Chromos is a biopharmaceutical company focused on inflammatory diseases and thrombotic disorders.

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