Intellipharmaceutics Closes US$5,000,000 Registered Direct Offering of Common Shares
March 15 2012 - 5:00PM
Intellipharmaceutics International Inc.
(Nasdaq:IPCI)(TSX:I), a pharmaceutical company specializing in the
research, development and manufacture of novel and generic
controlled-release and targeted-release oral solid dosage drugs,
today announced that it has closed its previously announced
registered direct common share offering for gross proceeds of
approximately US$5 million. The company sold an aggregate of
1,818,182 shares to U.S. institutional investors at a price of
US$2.75 per share. After placement agent fees and estimated
offering expenses, the company received net proceeds from the
offering of approximately US$4.4 million.
Roth Capital Partners, LLC, served as sole placement agent for
the offering.
Intellipharmaceutics intends to use the net proceeds to file
additional Abbreviated New Drug Applications (ANDAs) with the Food
and Drug Administration, to advance clinical trials for its abuse
resistant Rexista™ technology and/or other NDA 505(b)(2)
opportunities, to establish additional partnerships, and for
working capital, research, product development and general
corporate purposes.
The shares described above were offered by Intellipharmaceutics
through a prospectus supplement pursuant to a shelf registration
statement previously filed with and subsequently declared effective
by the Securities and Exchange Commission. A prospectus supplement
relating to the offering was filed with the SEC and is available on
the SEC's website at http://www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. Copies of the
prospectus supplement and accompanying base prospectus relating to
this offering may be obtained from Roth Capital Partners, LLC, 888
San Clemente, Newport Beach, CA 92660, (800) 678-9147 or email:
rothecm@roth.com or by accessing the SEC's website,
www.sec.gov.
About Intellipharmaceutics
Intellipharmaceutics International Inc. is a pharmaceutical
company specializing in the research, development and manufacture
of novel and generic controlled-release and targeted-release oral
solid dosage drugs. The company's patented Hypermatrix™ technology
is a multidimensional controlled-release drug delivery platform
that can be applied to the efficient development of a wide range of
existing and new pharmaceuticals. Based on this technology,
Intellipharmaceutics has a pipeline of product candidates in
various stages of development, including six ANDAs under review by
the FDA, in therapeutic areas that include neurology,
cardiovascular, gastrointestinal tract, diabetes, pain and
infection.
Certain statements in this document constitute "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and/or "forward-looking
information" under the Securities Act (Ontario). These statements
include, without limitation, statements expressed or implied
regarding our plans and milestones, status of developments or
expenditures relating to our business, plans to fund our current
activities, statements concerning our partnering activities, health
regulatory submissions, strategy, future operations, future
financial position, future sales and revenues, projected costs, and
market penetration. In some cases, forward-looking statements can
be identified by terminology such as "may", "will", "should",
"expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential", "continue", "intends", "could", or the
negative of such terms or other comparable terminology. We made a
number of assumptions in the preparation of these forward-looking
statements. You should not place undue reliance on our
forward-looking statements, which are subject to a multitude of
known and unknown risks and uncertainties that could cause actual
results, future circumstances or events to differ materially from
those stated in or implied by the forward-looking statements. These
risks and uncertainties include, but are not limited to, the
effects of general economic conditions, securing and maintaining
corporate alliances, the need for additional capital and the effect
of capital market conditions and other factors, including the
current status of our product development programs, capital
availability, the potential dilutive effects of any financing, the
timing of our programs to research, develop and commercialize our
product candidates, the timing, costs and uncertainties
regarding obtaining regulatory approvals to market our product
candidates, our estimates regarding our capital requirements and
future revenues, the timing and amount of investment tax credits,
and other risks and uncertainties detailed from time to time in our
public disclosure documents or other filings with the securities
commissions or other securities regulatory bodies in Canada and the
U.S. Additional risks and uncertainties relating to us and our
business can be found in the "Risk Factors" section of our latest
annual information form and latest Form 20-F, as well as in our
other public filings. The forward-looking statements are made as of
the date hereof, and we disclaim any intention and have 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.
CONTACT: Intellipharmaceutics International
30 Worcester Road
Toronto, ON Canada M9W 5X2
www.intellipharmaceutics.com
Shameze Rampertab
Vice President Finance & CFO
416-798-3001 x106 investors@intellipharmaceutics.com