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QUEBEC CITY, Aug. 29 /CNW/ - Medicago Inc. ("Medicago") (TSX-V: MDG)
today announced that it has completed a previously announced non-brokered
private placement of 11,050,000 units (the "Units") at a price of $0.20 per
Unit for gross proceeds of $2,210,000.
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 $0.30 at any time prior to 5:00 p.m. (EST) on
August 28, 2009. The Warrants are subject to an accelerated expiry if, at any
time after December 30, 2008, the published closing trade price of the Common
Shares on the TSX Venture Exchange Inc. is equal or superior to $0.60 for any
20 consecutive trading days, in which event the Company may give the Holder a
written notice and the Warrants will automatically expire, if not exercised,
30 days after receipt of such notice.
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 $120,600 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.
"Completing this private placement in a time of market turbulence is an
indication of the quality of the team involved in this transaction," said M.
Andy Sheldon, president and CEO.
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
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.
This press release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. The Company 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.
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For further information:
For further information: Medicago Inc., Andy Sheldon, President and CEO,