Intellipharmaceutics (IPCI) Announces $1.5M Convertible Debenture Offering

January 7, 2013 8:05 AM EST Send to a Friend
Intellipharmaceutics International Inc. (Nasdaq: IPCI) ) intends to complete a private placement financing (the "Financing") of US$1.5 million aggregate principal amount of unsecured convertible debentures (the "Debentures"), which will mature January 1, 2015.

The Debentures will bear interest at a rate of 12% per annum, payable monthly, will be pre-payable at any time at the option of the Company, and will be convertible at any time into common shares at a conversion price of US$3.00 per common share at the option of the holder. The Financing will be non-brokered and the net proceeds are to be used for working capital and general corporate purposes. The Financing is expected to close on or about January 10, 2013, subject to the approval of the Toronto Stock Exchange. The Debentures will not be listed on any market. If the Debentures were to be fully converted into common shares of the Company, the shares would represent approximately 2.8% of the Company's currently issued common shares on a non-diluted basis.


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