ViRexx Medical plans C$11 million private placement of convertibles

By Sheri Kasprzak

New York, July 25 - ViRexx Medical Corp. said it intends to raise C$11 million in a five-year term debt financing.

The convertible note is expected to be convertible at a 20% discount to the market price on the date of conversion. The full terms of the offering were not released Wednesday.

Proceeds will be used for the development of the company's platforms as ViRexx awaits approval on its lead product, OvaRex, a vaccine for ovarian cancer.

In other news, ViRexx said it is defending itself against a lawsuit brought against it by Clarus Securities Ltd. Clarus alleges that company canceled a C$15 million dilutive financing and claims that it is owed C$500,000 in damages.

According to a statement released Wednesday by ViRexx, the company has retained the services of attorney Bob White of the Davis Law Firm.

"ViRexx is confident, based on legal counsel, in its ability to successfully defend the lawsuits," the statement said.

ViRexx, based in Edmonton, Alta., develops treatments for certain cancers and chronic viral infections.

On Wednesday, the company's stock lost 3 cents to end at C$0.65 (Toronto: VIR).

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