By Sheri Kasprzak
New York, Dec. 21 - Mistral Pharma Inc. said it priced a C$1.5 million private placement.
The company intends to sell, on a non-brokered basis, up to 30 million shares at C$0.05 each to Dynex Capital Ltd.
Dynex agreed to buy at least C$500,000 in the offering.
Proceeds will be used for the development of the company's branded and generic product portfolio.
Some of the proceeds will be used to reimburse the C$500,000 debenture, plus interest, held by GlaxoSmithKline. The debenture expired Dec. 21.
The private placement and the transaction with GSK are slated to close on Jan. 20.
Separately, Mistral and GSK agreed to renew their existing contractual agreements related to the licensing of Procise. Mistral agreed to pay royalties to GSK on products using the Savitr technology.
Based in Montreal, Mistral Pharma is a drug delivery company focused on control delivery generic products.
| Issuer: | Mistral Pharma Inc.
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| Issue: | Stock
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| Amount: | C$1.5 million
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| Shares: | 30 million
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| Price: | C$0.05
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| Warrants: | No
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| Investor: | Dynex Capital Ltd.
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| Placement agent: | Non-brokered
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| Pricing date: | Dec. 21
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| Settlement date: | Jan. 20, 2006
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| Stock price: | C$0.035 at close Dec. 21
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