QUEBEC CITY, June 19 /CNW Telbec/ - AEterna Zentaris Inc. (NASDAQ: AEZS;
TSX: AEZ), a global biopharmaceutical company focused on endocrine therapy and
oncology, announced today that it has received commitments to purchase US$10
million of units comprised of common shares and common share purchase warrants
in a registered direct offering. AEterna Zentaris expects to receive net
proceeds of approximately US$9.25 million after deducting placement agent fees
and other offering expenses. Under the terms of a Securities Purchase
Agreement, the Company will sell to such institutional investors an aggregate
of 5,319,149 common shares of its capital at a price of US$1.88 per share and
issue warrants to acquire an aggregate of 1,861,702 common shares at an
exercise price of US$2.06 per share.
The warrants to purchase additional common shares of AEterna Zentaris
will be exercisable beginning three months after issuance and will expire 30
months 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 our leading oncology and endocrinology compounds. The offering
is expected to be consummated no later than June 24, 2009, subject to
customary closing conditions.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group,
Inc., (Nasdaq: RODM), acted as the exclusive placement agent for the
transaction. The placement agent will receive thirty-month warrants,
exercisable beginning six months after issuance, to purchase 287,234 common
shares at US$2.35 per share.
In connection with the offering, the Company 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 Company'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.
This press release contains forward-looking statements made pursuant to
the safe harbor provisions of the U.S. Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties, which could cause the Company's actual results to differ
materially from those in the forward-looking statements. Such risks and
uncertainties include, among others, the availability of funds and resources
to pursue R&D projects, the successful and timely completion of clinical
studies, the ability of the Company to take advantage of business
opportunities in the pharmaceutical industry, uncertainties related to the
regulatory process and general changes in economic conditions. Investors
should consult the Company's quarterly and annual filings with the Canadian
and U.S. securities commissions for additional information on risks and
uncertainties relating to the forward-looking statements. Investors are
cautioned not to rely on these forward-looking statements. The Company does
not undertake to update these forward-looking statements. We disclaim any
obligation to update any such factors or to publicly announce the result of
any revisions to any of the forward-looking statements contained herein to
reflect future results, events or developments except if we are requested by a
governmental authority or applicable law.
For further information: Investor Relations: Ginette Vallières, Investor
Relations Coordinator, (418) 652-8525 ext. 265, email@example.com; Media
Relations: Paul Burroughs, Director of Communications, (418) 652-8525 ext.