All references to dollars are to United States dollars
QUEBEC CITY, Nov. 2, 2015
/PRNewswire/ - Aeterna Zentaris Inc. (NASDAQ: AEZS; TSX: AEZ)
(the "Company") announced today that the holders (the
"Participating Holders") of substantially all of its remaining
outstanding Series B Common Share Purchase Warrants (the "Series B
Warrants") have agreed to exercise all of the approximately 4.1
million Series B Warrants held by them as promptly as practicable
at a maximum exercise ratio of approximately 33.23 Common Shares
per Series B Warrant in accordance with the alternate cashless
exercise feature in such Series B Warrants. Following the
exercise of Series B Warrants by the Participating Holders in
accordance with the terms of the agreement, approximately 0.8
million Series B Warrants, with an expiry date of September 12, 2016, will remain outstanding,
representing approximately 2.7% of the originally issued number of
Series B Warrants.
David A. Dodd, Chairman,
President and Chief Executive Officer of the Company remarked
regarding this development, "With the uncertainty about future
additional dilution from the Series B Warrants now substantially
resolved, it is time to focus on the fundamentals of this Company,
which I believe are very strong. I am excited about the
opportunity to create shareholder value with our internally
developed products and our growing externally sourced
portfolio. We are making significant progress on both
fronts. I am looking forward to providing updates regarding
our progress during our quarterly conference call on Friday, November 6, 2015."
In order to accommodate some of the Participating Holders'
internal policies, the Company has agreed that one or more of the
Participating Holders will not be required to exercise their Series
B Warrants on a given trading day, if such exercise would result in
such Participating Holder(s) owning more than 4.99% of the
Company's outstanding common shares on such day. Based on
historical trading volumes, the Company believes it is likely that
the Participating Holders will be able to exercise all of their
Series B Warrants prior to the Company's special meeting of
shareholders to be held on November 16,
2015 in connection with a proposed share consolidation.
Upon the alternate cashless exercise of all Series B Warrants
held by the Participating Holders, the Company will issue
approximately 136.9 million additional Common Shares, resulting in
the Company then having approximately 692.6 million issued and
outstanding Common Shares.
The Company will pay the Participating Holders an aggregate
amount of approximately $2.9 million
in consideration for their agreement to exercise their Series B
Warrants on an alternate cashless basis as promptly as
practicable. The Company was advised by Maxim Group LLC in
reaching this agreement with the Participating
Holders.
About Maxim Group LLC
Maxim Group LLC is a full-service investment banking firm
headquartered in New York. Maxim Group provides a full array
of financial services including investment banking; private wealth
management; and global institutional equity, fixed-income and
derivatives sales and trading as well as equity research. The
investment banking group focuses on middle market and emerging
growth companies within the healthcare, technology, media,
shipping, energy, retail, and business and financial services
sectors. The institutional coverage of Maxim Group spans
North and South America,
Europe and Asia. Maxim Group
LLC is a registered as a broker-dealer with the U.S. Securities and
Exchange Commission and is a member of the following: Financial
Industry Regulatory Authority (FINRA); Municipal Securities
Rulemaking Board (MSRB); Securities Insurance Protection
Corporation (SIPC); NASDAQ Stock Market and the NYSE Arca, Inc.
About Aeterna Zentaris Inc.
Aeterna Zentaris is a specialty biopharmaceutical company
engaged in developing and commercializing novel treatments in
oncology, endocrinology and women's health. For more
information, visit www.aezsinc.com.
Forward Looking Statements
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the US Securities
Litigation Reform Act of 1995. The statements in the press
release regarding our expectation that the Series B Warrants held
by the Participating Holders will be exercised by a certain date
and the progress we are making toward the creation of shareholder
value are forward-looking statements. Forward-looking
statements involve known and unknown risks and uncertainties that
could cause actual events to differ materially from those in the
forward-looking statements. Such risks and uncertainties
include, among others, those set forth in our quarterly and annual
filings with the Canadian and US securities commissions.
Investors should consult such filings for additional information on
risks and uncertainties relating to forward-looking
statements. Investors are cautioned not to place undue
reliance 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, unless required to do so by
a governmental authority or by applicable law.
SOURCE Aeterna Zentaris Inc.