Company to Receive Upfront US$17 Million Upon Closing
TORONTO, June 6, 2014 /CNW/ - Transition Therapeutics Inc. ("Transition" or the "Company") (NASDAQ: TTHI, TSX: TTH) announced that
Jack W. Schuler, Larry N. Feinberg, Oracle Investment Management,
certain Transition Board members, management and other existing
shareholders will make an investment of up to US$30.8 million by
purchasing 3,195,487 units of the Company at a price of US$5.32 per
Each unit consists of one common share, and 0.61 of a common share
purchase warrant with a purchase price of US$7.10 per whole warrant.
Each whole warrant will entitle the holder, within two years from
closing, to purchase one additional common share in the capital of the
Company. If and when all of the warrants are exercised, the Company
will realize an additional US$13.8 million, bringing the total
investment to US$30.8 million before transaction costs. Closing of the
private placement is expected to occur on or about June 20, 2014 and is
subject to approval from the Toronto Stock Exchange.
"With this offering, Transition has sufficient funding to complete its
Phase 2 clinical study of drug candidate ELND005 in agitation and
aggression associated with Alzheimer's disease and the Phase 2 clinical
study of drug candidate TT-401 (LY2944876) in type 2 diabetes.
Building on these core development programs, this offering will enable
the Company to expand its pipeline of drug candidates in-licensed
through partnerships with pharmaceutical companies. I am very pleased
with the on-going commitment and support of our large investors, Board
and management that contributed to the financing of the offering," said
Dr. Tony Cruz, Chairman and Chief Executive Officer of Transition.
These securities have not been registered under the U.S. Securities Act
of 1933, as amended (the "Act"), and may not be offered or sold in the
United States unless registered under the Act or unless an exemption
from registration is available. 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 the securities in any State in which such offer,
solicitation or sale would be unlawful.
Transition is a biopharmaceutical company, developing novel therapeutics
for disease indications with large markets. The Company's lead CNS drug
candidate is ELND005 for the treatment of Alzheimer's disease and Down
syndrome. Transition's lead metabolic drug candidate is TT-401
(LY2944876) for the treatment of type 2 diabetes and accompanying
obesity. The Company's shares are listed on the NASDAQ under the symbol
"TTHI" and the Toronto Stock Exchange under the symbol "TTH". For
additional information about the Company, please visit www.transitiontherapeutics.com.
Notice to Readers: Information contained in our press releases should be
considered accurate only as of the date of the release and may be
superseded by more recent information we have disclosed in later press
releases, filings with the Canadian Securities Commissions, the U.S.
Securities and Exchange Commission or otherwise. Except for historical
information, this press release may contain forward-looking statements,
relating to expectations, plans or prospects for Transition, including
the total aggregate investment to be made in the Company, the conduct
of clinical trials, the potential efficacy of its products and the
ability to expand its pipeline of drug candidates. These statements are
based upon the current expectations and beliefs of Transition's
management and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those described in
the forward-looking statements. These risks and uncertainties include
factors beyond Transition's control and the risk factors and other
cautionary statements discussed in Transition's quarterly and annual
filings with the Canadian Securities Commissions and the U.S.
Securities and Exchange Commission.
SOURCE: Transition Therapeutics Inc.
For further information:
For further information on Transition, visit www.transitiontherapeutics.com or contact:
Dr. Tony Cruz
Chief Executive Officer
Transition Therapeutics Inc.
Phone: 416-260-7770, x.223