Medicago Inc. completes $2.6 million non-brokered private placement



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    QUEBEC CITY, March 14 /CNW/ - Medicago Inc. ("Medicago") (TSX-V: MDG)
today announced that it has completed a previously announced non-brokered
private placement of 13,000,000 units (the "Units") at a price of $0.20 per
Unit for gross proceeds of $2,600,000. The original $2,000,000 private
placement announced on February 22, 2008, was oversubscribed and subsequently
increased to $2,600,000 on closing. Each Unit consists of one common share
(the "Common Shares") and one-half common share purchase warrant of Medicago
(the "Warrants"), with each full warrant ("Warrant") entitling the holder
thereof to purchase one Common Share for a purchase price of $0.25 at any time
prior to 5:00 p.m. (EST) on the date that is 24 months following the closing
of the private placement. The Common Shares, the Warrants and the Common
Shares underlying the Warrants will be subject to a statutory four-month hold
period.
    Medicago will pay a cash finder's fee of $215,070 in connection with the
placement. Net proceeds will be used to fund and support the development of
multiple vaccine products. The balance will be allocated to working capital
and other general corporate purposes.
    This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities of Medicago in the United States. The
securities have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to
U.S. Persons unless registered under the U.S. Securities Act and applicable
state securities laws or unless an exemption from such registration is
available.

    About Medicago Inc.

    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 press release contains forward-looking statements which reflect
Medicago's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. Medicago disclaims any obligation to
update these forward-looking statements.

    The TSX Venture Exchange assumes no responsibility for the content or
    accuracy of this press release

    %SEDAR: 00023641EF




For further information:

For further information: Medicago Inc., Andy Sheldon, President and CEO,
(418) 658-9393; The Equicom Group Inc., Arianna Vanin, Investor Relations,
(514) 844-4680, avanin@equicomgroup.com

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