MONTREAL, Nov. 6 /CNW Telbec/ - Arura Pharma Inc. (TSX-V: ARP) ("Arura")
is pleased to announce it has completed a first closing of its pre-announced
private placement for gross proceeds of $1,000,000.
"We are very pleased that Arura was able to secure that first tranche of
this financing round in such a short time frame and that a new strategic
institutional investor joined Arura shareholders, while close to 15% of that
tranche was invested by Board members and senior management of Arura, showing
confidence in our future" said Mr. Ali Moghaddam, Chief Executive Officer of
Arura. "This short-term equity financing is especially useful to support the
strong growth of Arura resulting from the Neolia Brands acquisition" added
Mr. Pierre Fortin, Chief Operations Officer of Arura.
The offering is conducted by Laurentian Bank Securities Inc. (the
"Agent"). The first tranche of the placement consisted in the issuance of
8,000,000 units issued a price of $0.125 and composed of one common share and
one-half common share purchase warrant (a "Unit"). Each whole warrant will
allow the holder to purchase an additional common share of Arura at the price
of $0.225 for a period of twenty-four months.
In connection with the private placement, the Agent received a cash
commission equal to 7% of the gross proceeds received by Arura from the sale
of the Units and broker warrants equal to 7% of the number of Units sold under
the Private Placement. Each broker warrant will be exercisable to purchase one
Unit at any time up for a period of 24 months from closing at an exercise
price equal to the issue price of the Units.
The net proceeds of this private placement will be used to pay down debt,
to finance the growth of the sales derived from the Neolia Brands and for
general working capital purposes.
About Arura Pharma Inc.
Arura is a specialty pharmaceutical company consisting of two business
units, namely an established consumer health business unit manufacturing and
distributing beauty and personal hygiene products in Canada and in the
United States and an emerging specialty pharmaceutical business unit geared at
acquiring and commercializing established prescription drugs and medical
devices in the oncology, wound care and neurology sectors, amongst others.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
For further information:
For further information: Daniel Pharand, Chairman, Arura Pharma Inc.,
(514) 984-4431, firstname.lastname@example.org; Ali Moghaddam, Chief Executive Officer,
Arura Pharma Inc., (450) 442-2545 ext. 233, email@example.com