Three-year arrangement reached with Dutchess Opportunity Cayman Fund
By Devika Patel
Knoxville, Tenn., Sept. 16 - MethylGene Inc. said it negotiated a C$15 million three-year equity line facility with Dutchess Opportunity Cayman Fund Ltd.
The shares will be sold at a 4% discount to the prevailing share price. The maximum number of shares that the company may issue is limited to the lower of 10,104,645 shares, or 25% of the current number of outstanding shares and 25% of the outstanding shares at any given time.
"This facility provides us with flexible access to capital at reasonable terms to help us achieve our goals," MethylGene president and chief executive officer Charles Grubsztajn stated. "We continue to progress our pipeline, with a focus on completing the three clinical trials evaluating MGCD265, our proprietary multi-targeted (Met) kinase inhibitor, in preparation for a randomized phase 2 trial in non-small cell lung cancer patients.
"Accessing this new capital, coupled with our commitment to leverage the opportunities that our proprietary pipeline offers, is a positive step forward that demonstrates our dedication to enhancing shareholder value," Grubsztajn concluded.
MethylGene is a biopharmaceutical company based in Montreal.
| Issuer: | MethylGene Inc.
|
| Issue: | Equity line facility
|
| Amount: | C$15 million
|
| Tenor: | Three years
|
| Price: | 4% discount
|
| Warrants: | No
|
| Investor: | Dutchess Opportunity Cayman Fund Ltd.
|
| Pricing date: | Sept. 16
|
| Stock symbol: | Toronto: MYG
|
| Stock price: | C$0.17 at close Sept. 16
|
| Market capitalization: | C$6.67 million
|
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