QUEBEC CITY, June 15 /PRNewswire-FirstCall/ - Aeterna Zentaris
Inc. (NASDAQ: AEZS; TSX: AEZ) (the "Company"), a late-stage drug
development company specialized in oncology and endocrinology,
announced today that it has received commitments from institutional
investors to purchase US$12.1 million
of securities in a registered direct offering. Under the terms of a
Securities Purchase Agreement, the Company will sell to such
institutional investors an aggregate of approximately 8.8 million
common shares of its capital at a price of US$1.3725 per share and issue warrants to acquire
an aggregate of approximately 4.4 million common shares at an
exercise price of US$1.3725 per
share.
The warrants to purchase additional common shares of Aeterna
Zentaris will be exercisable immediately upon issuance and will
expire on the fifth-year anniversary thereof. All of the securities
were offered pursuant to an effective shelf registration statement
filed in the United States.
Proceeds from the transaction will be used to fund the Company's
AEZS-108, AEZS-112 and AEZS-130 programs and for other general
corporate and working capital purposes. The offering is expected to
be consummated no later than June 18,
2010, subject to customary closing conditions.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw
Capital Group, Inc., (NASDAQ: RODM), acted as the exclusive
placement agent for the transaction.
The proceeds from Aeterna Zentaris' registered direct offering
that was completed on April 20, 2010
have been and are being used primarily in connection with
perifosine, Aeterna Zentaris' lead oncology compound that is being
developed in collaboration with its North American partner, Keryx
Biopharmaceuticals, Inc. (NASDAQ: KERX), following various positive
developments announced with respect to perifosine during the first
quarter of 2010.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any securities nor shall there be
any sale of such securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction. A shelf registration statement relating to the common
shares and warrants issued in the offering (and the common shares
issuable upon exercise of the warrants) has been filed with the
Securities and Exchange Commission (the "SEC") and has been
declared effective. A prospectus supplement relating to the
offering will be filed by the Company with the SEC and the Canadian
securities regulatory authorities. Copies of the prospectus
supplement and accompanying prospectus may be obtained directly
from the Company or by contacting Aeterna Zentaris Inc., 1405 du
Parc-Technologique Boulevard, Quebec
City, Canada G1P 4P5.
About Aeterna Zentaris Inc.
Aeterna Zentaris Inc. is a late-stage drug development company
specialized in oncology and endocrine therapy News releases and
additional information are available at www.aezsinc.com.
Forward-Looking Statements
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the U.S. Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties, which could cause the
Company's actual results to differ materially from those in the
forward-looking statements. Such risks and uncertainties include,
among others, the availability of funds and resources to pursue
R&D projects, the successful and timely completion of clinical
studies, the ability of the Company to take advantage of business
opportunities in the pharmaceutical industry, uncertainties related
to the regulatory process and general changes in economic
conditions. Investors should consult the Company's quarterly and
annual filings with the Canadian and U.S. securities commissions
for additional information on risks and uncertainties relating to
the forward-looking statements. Investors are cautioned not to rely
on these forward-looking statements. The Company does not undertake
to update these forward-looking statements. We disclaim any
obligation to update any such factors or to publicly announce the
result of any revisions to any of the forward-looking statements
contained herein to reflect future results, events or developments
except if we are required by a governmental authority or applicable
law.
SOURCE AETERNA ZENTARIS INC.