Medicago announces $10,080,000 bought deal equity financing
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Each Subscription Receipt represents the right to receive one unit of Medicago (each, a "Unit") upon the earlier of (the "Conversion Date"): (a) the date on which Philip Morris Participations B.V. ("PMP") refuses to exercise the Preemptive Right, (b) the date on which PMP subscribes to units of Medicago pursuant to its Preemptive Right, or (c)
In addition, Medicago has granted the Underwriters a compensation option (the "Compensation Option") to purchase a number of units (the "Compensation Option Units") representing up to 7% of the total number of Units sold under this Offering, including any Units issued pursuant to the Over-Allotment Option.
As previously announced, Medicago is party to a Representation Right and Preemptive Right Agreement (the "Preemptive Right Agreement"), made as of
In accordance with the Preemptive Right Agreement, PMP will be notified of the Offering and will be asked to confirm whether or not PMP desires to exercise its Preemptive Right to preserve its Proportionate Entitlement. If PMP elects to maintain its Proportionate Entitlement, the maximum total offering would amount to
If PMP advises Medicago of its intent not to maintain its Proportionate Entitlement before the closing of the Offering, the Offering would then become an offering of Units as per the provisions of the engagement letter with the Underwriters.
The Subscription Receipts, or Units, as the case may be, will be offered for sale to the public in each of the provinces of
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
Medicago is committed to provide highly effective and affordable vaccines based on proprietary Virus-Like Particle (VLP) and manufacturing technologies. Medicago is developing VLP vaccines to protect against H5N1 pandemic influenza, using a transient expression system which produces recombinant vaccine antigens in non-transgenic plants. This technology has potential to offer advantages of speed and cost over competitive technologies. It could deliver a vaccine for testing in about a month after the identification and reception of genetic sequences from a pandemic strain. This production time frame has the potential to allow vaccination of the population before the first wave of a pandemic strikes and to supply large volumes of vaccine antigens to the world market. Additional information about Medicago is available at www.medicago.com.
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with Medicago's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to Medicago or its management. The forward-looking statements are not historical facts, but reflect Medicago's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks Factors and Uncertainties" in Medicago's Annual Information Form filed on
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.For further information: Medicago, Inc., Andy Sheldon, President and CEO, (418) 658-9393; Medicago Inc., Arianna Vanin, Director, Investor Relations, (514) 796-3993