By Sheri Kasprzak
New York, May 26 - Isotechnika Inc. obtained a C$40 million equity draw-down facility from Azimuth Opportunity Ltd.
Over the course of two years, Azimuth may buy shares of Isotechnika at a discount ranging from 4.5% to 7%, based in market capitalization, to the volume weighted average price of the closing stock prices for the 20 trading days before a draw.
There is a limit to each draw equal to 3.5% of Isotechnika's outstanding common shares. Also, there is a limit of 20 draws on the facility.
Canaccord Capital Corp. was the placement agent for the transaction.
The majority of the proceeds from the offering will be used for development of the company's ISA247 treatment for psoriasis, including a European phase 3 clinical trial scheduled to begin later this year. The rest will be used for working capital and general corporate purposes.
Edmonton, Alta.-based Isotechnika develops therapeutic treatments for autoimmune disorders and for the prevention of organ rejection in transplants.
| Issuer: | Isotechnika, Inc.
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| Issue: | Equity line
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| Amount: | C$40 million
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| Tenor: | Two years
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| Price: | Equal to a 4.5% to 7% discount to the 20-day VWAP
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| Warrants: | No
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| Investor: | Azimuth Opportunity Ltd.
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| Placement agent: | Canaccord Capital Corp.
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| Settlement date: | May 26
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| Stock symbol: | Toronto: ISA
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| Stock price: | C$1.95 at close May 25
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