QUEBEC CITY, June 21 /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 completed its previously announced
registered direct offering of US$12.1
million of units comprised of common shares and common share
purchase warrants to certain institutional investors. Net proceeds
from this offering, after deducting placement agent fees and other
offering expenses total approximately US$11.3 million. All of the securities were
offered pursuant to an effective shelf registration statement.
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.
Proceeds received in connection with the Company's previous
registered direct offering, completed on April 20, 2010, have been and are being used
primarily in connection with perifosine, the Company's lead
oncology compound that is being developed in collaboration with its
North American partner, Keryx Biopharmaceuticals, Inc. (NASDAQ:
KERX) ("Keryx"), following various positive developments announced
with respect to perifosine during the first quarter of 2010.
Dr. Juergen Engel, Ph.D.,
President and CEO of Aeterna Zentaris stated: "These recent
financings, combined with our reduced burn-rate, provide us with a
solid financial position to pursue our drug development programs.
Our main focus will be on advancing, in collaboration with our
partner Keryx, the current Phase 3 trials with perifosine for
multiple myeloma and colorectal cancer, on completing the AEZS-108
Phase 2 trial in endometrial cancer and on advancing our AEZS-112
and AEZS-130 programs. We are very encouraged with the positive
data recently disclosed for perifosine and AEZS-108 and we look
forward to disclosing further results on our compounds and
initiating additional clinical trials by year-end."
As of June 21, 2010 and after
issuing approximately 8.8 million common shares at the closing of
this offering, the Company had approximately 83.1 common shares
issued and outstanding, without giving effect to or assuming the
exercise of any outstanding warrants.
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 was
filed with the SEC. Copies of the prospectus supplement and
accompanying prospectus may be obtained directly from Aeterna
Zentaris Inc., 1405 du Parc-Technologique Boulevard, Quebec City, Canada G1P 4P5. This announcement
is neither an offer to sell nor a solicitation of an offer to buy
any of Aeterna Zentaris' common shares or warrants. No offer,
solicitation or sale will be made in any jurisdiction in which such
offer, solicitation or sale is unlawful.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw
Capital Group, Inc., (Nasdaq: RODM), acted as the exclusive
placement agent for the transaction.
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.