/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR
THROUGH US NEWSWIRE SERVICES/
CALGARY, July 23, 2014 /CNW/ - Zenith Epigenetics Corp. ("Zenith" or the
"Company") today announced that it has closed a private placement of
4.3 million common shares at a price of US$1.00 per share for gross
proceeds of CAD$4.6 million (the "Private Placement"). NGN BioMed
Opportunity II, L.P. ("NGN") subscribed for 1,000,000 common shares.
The shares are subject to a four month hold period.
After giving effect to the Private Placement, NGN holds 11,103,004
common shares of Zenith, representing approximately 12.2% of Zenith's
issued and outstanding common shares. NGN also holds 350,000 common
share purchase warrants of Zenith.
Pursuant to the terms of the Private Placement, in the event that Zenith
completes an equity financing within 18 months and the price per share
is lower than US$1.00, the price per share paid by the subscribers to
the Private Placement will be adjusted to the lower price per share and
they will, accordingly, receive additional common shares for no
The Private Placement was a related party transaction within the meaning
of applicable Canadian securities laws as NGN is an insider of Zenith.
The transaction was exempt from the formal valuation and minority
approval requirements applicable to related party transactions on the
basis that the value of the transaction was less than 25 percent of
Zenith's market capitalization, as determined by the Board of Directors
of the Company. Zenith did not file a material change report more than
21 days prior to closing as contemplated by the related party
transaction requirements as the insider participation was only recently
Zenith intends to use the net proceeds from the offering to fund
research and development activities, general and administrative
expenses, increased working capital and for other general corporate
The securities issued under the offering 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
accordingly, may not be offered or sold within the United States except
in compliance with the registration requirements of the U.S. Securities
Act and applicable state securities requirements or pursuant to
exemptions therefrom. This press release does not constitute an offer
to sell or a solicitation of an offer to buy any of Zenith's securities
in the United States.
Zenith Epigenetics Corp. is a clinical stage biotechnology company
focused on the discovery and development of novel therapeutics by
applying its proprietary epigenetics platform. Zenith's bromodomain
(BET) inhibitors are being advanced in several oncology indications and
have the potential to impact multiple additional diseases as well.
This news release may contain certain forward-looking information as
defined under applicable Canadian securities legislation, that are not
based on historical fact, including without limitation statements
containing the words "believes", "anticipates", "plans", "intends",
"will", "should", "expects", "continue", "estimate", "forecasts" and
other similar expressions. In particular, this news release includes
forward looking information relating to the use of proceeds of the
offering. Our actual results, events or developments could be
materially different from those expressed or implied by these
forward-looking statements. We can give no assurance that any of the
events or expectations will occur or be realized. By their nature,
forward-looking statements are subject to numerous assumptions and risk
factors including those discussed in our most recent MD&A which are
incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and are made as of the
date hereof. The Company disclaims any intention and has no obligation
or responsibility, except as required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE: Zenith Epigenetics Corp.
For further information:
Donald J. McCaffrey
President and CEO
Zenith Epigenetics Corp.