Merus Labs International Inc. announces proceeds of the warrant incentive program and repayment of short term credit facility
VANCOUVER, Oct. 14, 2011 /CNW/ - Merus Labs International Inc. (the "Company") is pleased to announce that 16,324,250 warrants were exercised pursuant to the warrant incentive program (the "Program") announced by the Company on September 28, 2011 for gross proceed of $6,529,700. Under the Program the Company granted to holders of its existing warrants one half of a bonus warrant (a "Bonus Warrant") for each existing warrant exercised on or before October 12, 2011. The Bonus Warrant is exercisable at $0.65 for 18 months. The Company has agreed to pay a 4% cash payment to PowerOne Capital Markets Limited and Primary Capital Inc. in connection with their assistance in having the existing warrant holders exercise their warrants.
The Company also announces that from the proceeds of the Program, it has repaid $4,444,000 remaining balance of the short-term loan ($6.0 million) extended by Envoy Capital to the Company earlier this year, inclusive of principal and interest.
"I am very pleased with the results of the warrant incentive program. With our stronger balance sheet we will continue to search for product acquisition and licensing opportunities to increase value for our shareholders in the near future." said Ahmad Doroudian, President and CEO.
About Merus Labs
Merus is a specialty pharmaceutical company engaged in the acquisition and licensing of pharmaceutical products. Merus Labs utilizes its expertise in the North American pharmaceutical markets and its access to capital to acquire and license niche branded products in Canada and United States. Merus Labs further enhances the sale and distribution of these products by introduction of a focused marketing and promotion plan.
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Dr. Ahmad Doroudian, Chief Executive Officer
Merus Labs International Inc.
Tel: (604) 805-7783