Deal with Philip Morris Investments has already raised C$11.28 million
By Devika Patel
Knoxville, Tenn., Oct. 27 - Medicago Inc. said it will conduct a C$22.46 million private placement of stock in two tranches with Philip Morris Investments BV. The deal has already raised C$11.28 million.
The company is selling 34.55 million common shares at C$0.65 apiece. It sold 17.35 million shares in the initial tranche. The price per share represents an 8.33% premium to C$0.60, the Oct. 26 closing share price.
The financing is part of the investor's pre-emptive right from a C$25 million private placement of stock in October 2008. After completing the latest private placement, it is expected that Philip Morris Investments will hold about 40% of the company's outstanding common shares.
Proceeds will be used for clinical development of the company's plant-based manufactured influenza virus-like particles vaccines, development of additional product candidates and other general corporate and working capital purposes.
Medicago is a biotechnology company based in Quebec City.
| Issuer: | Medicago Inc.
|
| Issue: | Common shares
|
| Amount: | C$22,457,500
|
| Shares: | 34.55 million
|
| Price: | C$0.65
|
| Warrants: | No
|
| Investor: | Philip Morris Investments BV
|
| Settlement date: | Oct. 27 (for C$11,277,500)
|
| Stock symbol: | Toronto: MDG
|
| Stock price: | C$0.60 at close Oct. 26
|
| Market capitalization: | C$127.2 million
|
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