By Sheri Kasprzak
Atlanta, Nov. 16 - Dimethaid Research Inc. has wrapped up a C$12.8 million private placement, the company announced Tuesday.
The company sold 12,800 units of one convertible debenture and 1,667 common share warrants. The company sold an additional 4,000 units to F.W. Kuhne for obligations arising from the company's purchase of Oxo Chemie AG.
Each unit contains one 5% convertible unsecured debenture with a C$1,000 par value. The debentures mature Nov. 16, 2009 and are convertible into common shares at C$0.30.
The warrants allow for an additional share at C$0.45 through Nov. 16, 2007 and C$0.48 through Nov. 16, 2009.
The offering was made through placement agents Research Capital Inc., which was lead agent, and McFarlane Gordon Inc.
Proceeds were C$11.2 million.
Based in Toronto, Dimethaid is a pharmaceutical development company. The company plans to use the proceeds from the deal for restructuring and severance costs, to repay current obligations and to fund clinical trials. The company will use the remainder of the proceeds for general corporate purposes.
| Issuer: | Dimethaid Research Inc.
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| Issue: | Units of one convertible debenture and one warrant
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| Amount: | C$12.8 million
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| Units: | 12,800
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| Price: | Par of C$1,000
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| Coupon: | 5%
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| Maturity: | Nov. 16, 2009
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| Conversion price: | C$0.30
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| Warrants: | 1,667 warrants per unit
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| Warrant expiration: | Nov. 16, 2009
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| Warrant strike price: | C$0.45 through Nov. 16, 2007 and C$0.48 through Nov. 16, 2009
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| Placement agent: | Research Capital Inc. (lead), McFarlane Gordon Inc.
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| Settlement date: | Nov. 16
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| Stock price: | C$0.35 at Nov. 16
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