SAN DIEGO, CA and VANCOUVER, Dec. 23, 2011 /CNW/ -Protox Therapeutics
Inc. ("Protox") (TSX: PRX), a developer of innovative products for the
treatment of urological diseases, today announced that Warburg Pincus
has agreed to invest an additional CDN $8.3M in Protox, pursuant to its
rights under the terms of the existing Investment Agreement, dated
September 28, 2010 (the "Investment Agreement").
Dr. Lars Ekman, Executive Chairman and President said, "We are very
pleased to receive this additional investment from Warburg Pincus.
This additional capital demonstrates Warburg Pincus' continued support
of the company and will add meaningful funds to assist our continued
developmental progress of PRX 302 for the treatment of Benign Prostate
Under the Investment Agreement, Warburg Pincus Private Equity X, L.P.
and Warburg Pincus X Partners, L.P. (together "Warburg Pincus") have
the right to invest up to CDN $35 million in Protox. The initial CDN
$10 million investment closed November 19, 2010. Upon closing of this
additional investment, Warburg Pincus will have invested a total of CDN
$18.3M in Protox under the current Investment Agreement. Warburg
Pincus has the right to make further additional investments under the
terms of the Investment Agreement.
With this specific CDN $8.3M, Warburg Pincus has agreed to purchase an
additional 20,833,333 units of Protox (the "Subsequent Investment"), on
the same terms as the initial investment, being at a price of CDN $0.40
per unit, where each unit is comprised of one common share of Protox
and 0.6 common share purchase warrants. Each whole warrant entitles
the holder to purchase one common share of Protox at a price of CDN
$0.50, exercisable for a period of five years from the date of issue,
subject to the acceleration of the expiry date in certain
The closing of the Subsequent Investment is expected to occur on
December 28, 2011, or such other date as is agreed on by Protox and Warburg
Pincus, subject to the satisfaction of certain closing conditions. The
Investment Agreement and the transactions contemplated previously
received approval from Protox's shareholders on November 16, 2010 and
have also been approved by the Toronto Stock Exchange. Upon the
closing of the Subsequent Investment, Warburg Pincus will hold
45,833,333 common shares (approximately 32% of the Company's
outstanding shares) and 27,500,000 share purchase warrants.
Warburg Pincus advises that the investment in Protox is being made as a
strategic investment and that Warburg Pincus may increase or decrease
its investment, directly or indirectly, in Protox from time to time,
depending on market conditions or any other relevant factors.
About Warburg Pincus
Warburg Pincus is a leading global private equity firm. The firm has
more than $35 billion in assets under management. Its active portfolio
of more than 125 companies is highly diversified by stage, sector, and
geography. Warburg Pincus is a growth investor and an experienced
partner to management teams seeking to build durable companies with
sustainable value. Founded in 1966, Warburg Pincus has raised 13
private equity funds which have invested more than $40 billion in over
650 companies in more than 30 countries.
Since inception, Warburg Pincus has invested approximately $7.5 billion
in healthcare companies, including investments in American Medical
Systems (NASDAQ: AMMD), Bausch + Lomb, Coventry Health Care (NYSE:
CVH), Euromedic International (acquired by Merrill Lynch Global Private
Equity and Ares Life Sciences in 2008), Harbin Pharmaceuticals (SHA:
600664), InterMune (NASDAQ: ITMN), Lepu Medical Technology (SHE:
300003), RegionalCare Hospital Partners, ReSearch Pharmaceutical
Services, Rural/Metro Corporation and Tornier (NASDAQ: TRNX).
The firm is headquartered in New York with offices in Amsterdam,
Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai,
San Francisco, Sào Paulo and Shanghai. For more information, please
Protox Therapeutics is a developer of innovative products for the
treatment of urological diseases. Protox's lead program, PRX302
(PORxin), achieved positive results from its Phase 2b placebo
controlled trial called TRIUMPH, to treat benign prostatic hyperplasia
(BPH or enlarged prostate). Protox has partnered with Kissei
Pharmaceuticals for the development and commercialization of PRX302 in
Japan. For more information, please visit www.protoxtherapuetics.com.
Certain statements included in this press release may be considered
forward-looking. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from those
implied by such statements, and therefore these statements should not
be read as guarantees of future performance or results. All
forward-looking statements are based on Protox' current beliefs as well
as assumptions made by and information currently available to Protox
and relate to, among other things, closing of the Subsequent
Investment, anticipated financial performance, business prospects,
strategies, regulatory developments, market acceptance and future
commitments. 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 Protox in its public securities filings;
actual events may differ materially from current expectations. Protox
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE Protox Therapeutics Inc.
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