MONTREAL, Oct. 1 /CNW Telbec/ - Arura Pharma Inc. (TSX-V: ARP) ("Arura")
announces its intent to proceed with a brokered private placement for an
amount of up to $3,000,000. The offering will be conducted on a best-efforts
basis by Laurentian Bank Securities Inc. (the "Agent"). The placement will
consist of 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. Assuming that the Private
Placement is fully subscribed, an aggregate of an additional 24,000,000 common
shares of Arura will be issued prior to the exercise of the Warrants and of
the Agent's options.
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, to finance
the development of Silkit's products should the acquisition of Silkit Pharma
Corporation be completed and for general working capital purposes.
In connection with the private placement, the Agent will receive 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 offering will be eligible to the SME-Growth program for Quebec
residents. Closing is subject to obtaining all necessary regulatory approvals
(including the TSX-V) and to the completion of satisfactory due diligence.
Securities issued as part of this offering will be subject to a four-month
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.
There can be no insurance that the offering described therein or the
contemplated acquisition of Silkit Pharma Corporation will be completed as
described in whole or in part or as described herein and these two
transactions shall be considered as independent of each other.
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