Deal was brokered by agent syndicate; proceeds finance development
By Devika Patel
Knoxville, Tenn., Sept. 27 - Medicago Inc. said it settled a C$25 million private placement of stock. The deal priced for C$24.5 million on Sept. 23.
The company sold 38,462,600 common shares at C$0.65 apiece. The price per share represents a 6.56% premium to C$0.61, the Sept. 22 closing share price.
The deal was conducted on a best-efforts basis by a syndicate of agents co-led by Bloom Burton & Co. Inc., Desjardins Capital Markets and Paradigm Capital Inc.
Proceeds will be used for clinical development of the company's plant-based manufactured Influenza VLPs vaccines, development of additional product candidates and other general corporate and working capital purposes.
"Attracting a top 50 global pharmaceutical company as the lead investor of this offering is a validation of our effective plant-based VLP vaccines, our technology platform and our strategy," president and chief executive officer Andy Sheldon said in a press release.
"This financing allows us to further advance our overall programs, enhancing our platform and provides us a strong cash position going forward."
"We are also very pleased to see the continued investment support and commitment from our healthcare-focused institutional investors, which include among others AgeChem Venture Fund LP, CTI Life Sciences LP, Fonds de solidarité FTQ and Le Fonds d'investissement RÉA II Natcan Inc.," vice president and chief financial officer Pierre Labbe added.
"We appreciate their continued support of our growth strategy, especially in the face of turbulent global capital markets."
Medicago is a biotechnology company based in Quebec City.
| Issuer: | Medicago Inc.
|
| Issue: | Common shares
|
| Amount: | C$25 million
|
| Shares: | 38,462,600
|
| Price: | C$0.65
|
| Warrants: | No
|
| Agent: | Bloom Burton & Co. Inc., Desjardins Capital Markets and Paradigm Capital Inc. (co-leads)
|
| Investors: | AgeChem Venture Fund LP, CTI Life Sciences LP, Fonds de solidarité FTQ, and Le Fonds d'investissement RÉA II Natcan Inc.
|
| Pricing date: | Sept. 23
|
| Settlement date: | Sept. 27
|
| Stock symbol: | TSX Venture: MDG
|
| Stock price: | C$0.61 at close Sept. 23
|
| Market capitalization: | C$111.05 million
|
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