Aeterna Zentaris (AEZS) to Sell 5.2M Common at $1.50/Share in Direct Offering
Aeterna Zentaris Inc. (Nasdaq: AEZS) has received commitments from institutional investors to purchase US$7.8 million of securities in a registered direct offering. Under the terms of a Securities Purchase Agreement, the Company will sell to such investors an aggregate of approximately 5.2 million common shares of its capital at a price of US$1.50 per share and issue warrants to acquire an aggregate of approximately 2.6 million common shares at an exercise price of US$1.85 per share.
The warrants to purchase additional common shares of Aeterna Zentaris will be exercisable at the end of the sixth month following their issuance and will expire on the fifth-year anniversary thereof. All of the securities were offered pursuant to an effective shelf registration statement filed in the United States. Proceeds from the transaction will be used by the Company to continue to fund its ongoing drug development activities, primarily for the advancement of the Company's zoptarelin doxorubicin (AEZS-108) program, secondly for its macimorelin acetate (AEZS-130) program, as well as for general corporate purposes and working capital. The offering is expected to be consummated on or about July 30, 2013, subject to customary closing conditions.
Burrill Securities LLC acted as the exclusive placement agent for the transaction.
The warrants to purchase additional common shares of Aeterna Zentaris will be exercisable at the end of the sixth month following their issuance and will expire on the fifth-year anniversary thereof. All of the securities were offered pursuant to an effective shelf registration statement filed in the United States. Proceeds from the transaction will be used by the Company to continue to fund its ongoing drug development activities, primarily for the advancement of the Company's zoptarelin doxorubicin (AEZS-108) program, secondly for its macimorelin acetate (AEZS-130) program, as well as for general corporate purposes and working capital. The offering is expected to be consummated on or about July 30, 2013, subject to customary closing conditions.
Burrill Securities LLC acted as the exclusive placement agent for the transaction.