By Sheri Kasprzak
Atlanta, April 18 - Lorus Therapeutics Inc. said it has closed the C$5 million final tranche on its previously announced C$15 million private placement.
The company issued a convertible debenture for C$5 million to The Erin Mills Investment Corp. The debenture matures Oct. 6, 2009, bears interest at Prime rate plus 100 basis points per year and is convertible into common shares at C$1.00 each. The conversion price represents a 41% premium to the company's closing stock price on April 14.
The agreement between Lorus and Erin Mills was first made in October 2004, when Erin Mills agreed to buy C$15 million in convertible debentures in three tranches of C$5 million.
The first closing occurred Oct. 6, 2004 and the second on Jan. 14.
Lorus is a Toronto-based biopharmaceutical company focused on the research and development of cancer therapies. It plans to use the proceeds from the offering to finance research, development and ongoing operations.
Issuer: | Lorus Therapeutics Inc.
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Issue: | Convertible secured debentures
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Amount: | C$5 million
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Maturity: | Oct. 6, 2009
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Coupon: | Prime rate plus 100 basis points
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Conversion premium: | 41%
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Conversion price: | C$1.00
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Warrants: | No
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Investor: | The Erin Mills Investment Corp.
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Settlement date: | April 14
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Stock price: | C$0.72 at close April 14
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