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TORONTO, Aug. 10, 2016 /CNW/ - ProMIS Neurosciences, Inc. ("ProMIS" or the "Company") today announced that, pursuant to its June 27, 2016 announcement, it has completed its non-brokered private placement (the "Private Placement") of 7,410,000 Units at $0.135 per Unit for gross proceeds of CDN $1,000,035. The Company's senior management and Board of Directors participated in the Private Placement, purchasing 11% of the issued Units.
Each Unit consists of one common share and one-quarter of a common share purchase warrant. Each whole warrant is exercisable into one share at a price of $0.20 per share for a 24-month exercise period. Warrants are subject to abridgement (after the expiry of the 4-month hold period) with 30 days' notice to holders in the event that the ten-day volume weighted price of the shares exceeds $0.30.
In connection with the Private Placement, ProMIS paid finders fees of $5,279 and will issue 35,750 finder warrants with the same terms as the warrants issued as part of the unit offering. All securities issued in connection with the Private Placement are subject to a four-month hold period from the date of issuance in accordance with applicable securities law.
The Company is also announcing that it is increasing the private placement offering (the Offering) for up to an additional 7,410,000 Units, with the same terms as described above for gross proceeds of up to approximately CDN$1,000,000 and with an anticipated deadline of Aug. 31, 2016 for reception of subscription agreements and related funds.
The net proceeds of the Offering will be used (a) for the Company's Alzheimer's disease (AD) programs, to validate and optimize the several lead product programs (up to six) ProMIS is developing against different strains of Amyloid beta (Aβ) "prions" and to accelerate efforts to identify targets and products against Tau "prions" in AD, (b) to support and enhance ProMIS' patent estate and, c) for general working capital purposes, including to accelerate partnering efforts for ProMIS' ALS portfolio.
All shares issued will be subject to a four-month hold period from the date of issuance in accordance with applicable provincial securities laws in Canada. Closing of the Offering is subject to receipt of TSX acceptance. The Company confirms that there is no material fact or material change about the Company that has not been generally disclosed. The Company will pay finders' fees and issue finder warrants on a portion of the proceeds of the Offering.
"These funds will support the Company as we continue to evaluate novel Alzheimer's disease drug targets on toxic, prion-like strains of protein Tau and augment our patent portfolio as they are identified," said Dr. Elliot Goldstein, CEO of ProMIS. "In the short term, we are looking forward to the results of our ongoing validation studies in cadaveric brain tissue from AD patients to select the therapeutic candidates targeting strains of prion-like Aβ to advance into drug development."
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About ProMIS Neurosciences, Inc.
The mission of ProMIS Neurosciences is to discover and develop precision medicine therapeutics for effective treatment of neurodegenerative diseases, in particular Alzheimer's disease and ALS.
ProMIS Neurosciences' proprietary target discovery engine is based on the use of two, complementary techniques. The Company applies its thermodynamic, computational discovery platforms—ProMIS™ and Collective Coordinates — to predict novel targets known as Disease Specific Epitopes (DSEs) on the molecular surface of misfolded proteins. Using this unique "precision medicine" approach, ProMIS Neurosciences is developing novel antibody therapeutics and specific companion diagnostics for Alzheimer's disease and ALS. The company has also developed two proprietary technologies to specifically identify very low levels of misfolded proteins in a biological sample. In addition, ProMIS Neurosciences owns a portfolio of therapeutic and diagnostic patents relating to misfolded SOD1 in ALS, and currently has three preclinical monoclonal antibody therapeutics against this target.
The information in this release may contain certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information please consult the Company's website at: www.promisneurosciences.com
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For further information: NATIONAL Equicom, Michael Moore: firstname.lastname@example.org; Abby Garfunkel: email@example.com; or contact Dr. Elliot Goldstein, President and Chief Executive Officer, ProMIS Neurosciences Inc., Tel. 415 341-5783, Elliot.firstname.lastname@example.org