Rodman & Renshaw Announces AEterna Zentaris to Raise $5.5 Million from Institutional Investors at $1.20 Per Share

October 20, 2009 1:26 PM EDT

NEW YORK--(BUSINESS WIRE)-- Rodman & Renshaw, LLC (NASDAQ: RODM) today announced that its client AEterna Zentaris Inc. (NASDAQ: AEZS; TSX: AEZ), a global biopharmaceutical company focused on endocrine therapy and oncology, has received commitments to purchase US$5.5 million of units comprised of common shares and common share purchase warrants in a registered direct offering. Rodman & Renshaw, LLC (Nasdaq: RODM) acted as the sole placement agent for the transaction.

Under the terms of a Securities Purchase Agreement, the AEterna Zentaris Inc. will sell to such institutional investors an aggregate of approximately 4.58 million common shares of its capital at a price of US$1.20 per share and issue warrants to acquire an aggregate of approximately 1.83 million common shares at an exercise price of US$1.25 per share.

The warrants to purchase additional common shares of AEterna Zentaris Inc. will be immediately exercisable upon issuance and will expire five years after issuance. All of the common shares and warrants were offered pursuant to an effective shelf registration statement. Proceeds from the transaction will be used for general corporate purposes, including clinical development of AEterna Zentaris Inc.'s leading compounds. The offering is expected to be consummated no later than October 22, 2009, subject to customary closing conditions.

In connection with the offering, the AEterna Zentaris Inc. will file a prospectus supplement to its existing base shelf prospectus with the Canadian securities regulatory authorities and with the Securities and Exchange Commission. Copies of the prospectus supplement and accompanying prospectus may be obtained directly from the Company or by contacting AEterna Zentaris Inc., 1405 du Parc-Technologique Boulevard, Quebec City, Canada G1P 4P5.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This offering is being made by means of a prospectus supplement to the AEterna Zentaris Inc.'s existing base prospectus that is part of its shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission.

About AEterna Zentaris Inc.

AEterna Zentaris Inc. is a global biopharmaceutical company focused on endocrine therapy and oncology, with proven expertise in drug discovery, development and commercialization. News releases and additional information are available at www.aezsinc.com.

About Rodman & Renshaw

Rodman & Renshaw Capital Group, Inc. is a holding company with a number of direct and indirect subsidiaries, including Rodman & Renshaw, LLC.

Rodman & Renshaw (NASDAQ: RODM) is a full-service investment bank dedicated to providing corporate finance, strategic advisory and related services to public and private companies across multiple sectors and regions. The company also provides research and sales and trading services to institutional investors. Rodman is the leader in the PIPE (private investment in public equity) and RD (registered direct offering) transaction markets. Rodman has been ranked the #1 Placement Agent in terms of the aggregate number of PIPE and RD financing transactions completed every year since 2005 and 2009 year-to-date as ranked by Sagient Research Systems. For more information visit Rodman & Renshaw on the Internet at www.rodm.com.

MEMBER FINRA, SIPC

    Source: Rodman & Renshaw, LLC

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