- Issuance of 7,286,828 common shares in settlement of convertible notes
LAVAL, QC, Jan. 1, 2016 /CNW/ - BELLUS Health Inc. (TSX: BLU) (BELLUS
Health or the Company), a drug development company focused on rare
diseases, today announced the scheduled issuance of 7,286,828 common
shares from treasury to Victoria Square Ventures Inc. (VSVI) in
settlement of convertible notes. The settlement further simplifies the
Company's capital structure.
The convertible notes' notional amount was approximately $10.9 million
and terms of the conversion were determined as part of BELLUS Health's
capital reorganization in 2012. Subsequent to the settlement, VSVI now
holds 32.5% of the Company's issued and outstanding common shares and
27.0% on a fully diluted basis.
"The settlement of these convertible notes is the penultimate step to
the completion of our capital structure's simplification that started
in 2012", said Roberto Bellini, President and Chief Executive Officer
of BELLUS Health. "We expect that the conversion of the second and
final equity-like instrument, being the Pharmascience Exchange Right,
will occur by the fourth quarter of 2016."
The Company now has approximately 54.7 million common shares outstanding
and 65.7 million common shares on a fully diluted basis. Dilution items
include approximately 4.7 million common shares issuable under the
stock option plan and 6.4 million common shares issuable upon the
exercise by Pharmascience of its right to exchange its 10.4% interest
in the limited partnership carrying out BELLUS Health's activities (the
Exchange Right). On or after September 30, 2016, BELLUS Health has the
right, which the Company expects to exercise, to force the conversion
of the Pharmascience Exchange Right.
For further information, please see a recent blog post by the Company's
Vice President, Finance, François Desjardins on the BELLUS Health
website at www.bellushealth.com.
About BELLUS Health (www.bellushealth.com)
BELLUS Health is a drug development company focused on rare diseases.
Its pipeline of rare disease projects includes KIACTA™ in Phase III for
AA amyloidosis, KIACTA™ for sarcoidosis, clinical stage Shigamab™ for
sHUS and a research-stage project for AL amyloidosis. The lead program
KIACTA™ is currently in a Phase III Confirmatory Study for the
treatment of AA amyloidosis, an orphan indication resulting in renal
dysfunction that often leads to dialysis and death. BELLUS Health is
partnered with global private equity firm Auven Therapeutics for the
development of KIACTA™.
Certain statements contained in this news release, other than statements
of fact that are independently verifiable at the date hereof, may
constitute "forward-looking statements" within the meaning of Canadian
securities legislation and regulations. Such statements, based as they
are on the current expectations of management, inherently involve
numerous important risks, uncertainties and assumptions, known and
unknown, many of which are beyond BELLUS Health Inc.'s control. Such
risks factors include but are not limited to: the ability to obtain
financing, the impact of general economic conditions, general
conditions in the pharmaceutical industry, changes in the regulatory
environment in the jurisdictions in which the BELLUS Health Inc. does
business, stock market volatility, fluctuations in costs, changes to
the competitive environment due to consolidation, achievement of
forecasted burn rate, potential payments/outcomes in relation to
indemnity agreements and contingent value rights, achievement of
forecasted pre-clinical and clinical trial milestones, dependence on
Auven Therapeutics for the completion of the KIACTA™ Phase III Confirmatory Study and that actual results may vary once the
final and quality-controlled verification of data and analyses has been
completed. In addition, the length of the KIACTATM Phase III Confirmatory Study and the sharing of proceeds between Auven
Therapeutics and BELLUS Health Inc. from potential future revenue of
KIACTA™ is dependent upon a number of factors, including the quantum of
proceeds. Consequently, actual future results and events may differ
materially from the anticipated results and events expressed in the
forward-looking statements. The Company believes that expectations
represented by forward-looking statements are reasonable, yet there can
be no assurance that such expectations will prove to be correct. The
reader should not place undue reliance, if any, on any forward-looking
statements included in this news release. These forward-looking
statements speak only as of the date made, and BELLUS Health Inc. is
under no obligation and disavows any intention to update publicly or revise such statements as a result of any new information, future event, circumstances or otherwise, unless
required by applicable legislation or regulation. Please see BELLUS
Health Inc.'s public filings with the Canadian securities regulatory
authorities, including the Annual Information Form, for further risk
factors that might affect BELLUS Health Inc. and its business.
SOURCE BELLUS Health Inc.
For further information:
Vice President, Finance
BELLUS Health Inc.