Medicago announces an increase of its previously announced equity offering to $7.5 million
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QUEBEC CITY, Aug. 10 /CNW/ - Medicago Inc. ("Medicago" or the "Company") (TSX: MDG), announces that it has increased the size of its previously announced offering and now intends to sell, under an agency agreement, up to 18,518,520 Units at a price of $0.405 per Unit, representing gross proceeds of $7.5 million. Each Unit is comprised of one common share and three-quarter of one common share purchase warrant. Each full warrant will have an exercise price of $0.50, exercisable for a period of 5 years following the closing date of the offering. The offering is being conducted by Dundee Securities Corporation and Paradigm Capital Inc. as agents, and Bloom Burton & CO. as member of the selling group with respect to the offering. The offering is effected in each of the provinces of British Columbia, Alberta, Ontario and Quebec by way of a prospectus supplement to Medicago's base shelf prospectus dated July 7, 2010.
Medicago intends to use the net proceeds from the offering to fund its participation to the cost-sharing program pursuant to the previously announced Technology Investment Agreement following the award of a $21 million funding award from the Defense Advanced Research Projects Agency ("DARPA") and for other general corporate and working capital purposes.
The transaction is expected to close on or about August 19, 2010, subject to the satisfaction of all necessary regulatory approvals, including the conditional listing approval of the Toronto Stock Exchange.
This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
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.
Forward Looking Statements
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 Company 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 March 24, 2010 with the regulatory authorities. Medicago assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
%SEDAR: 00023641EFFor further information: Medicago, Inc., Andy Sheldon, President and CEO, (418) 658-9393; Medicago Inc., Christina Cameron, Investor Relations Manager, (418) 658-9393 x156