QUÉBEC CITY, March 11, 2015 /CNW
Telbec/ - Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZ)
(the "Company") today announced the closing of its previously
announced public offering of 59,677,420 units (the "Offering")
generating net proceeds of approximately US$34.5 million, with each unit consisting
of one common share, 0.75 of a Series A warrant to purchase one
common share, and 0.50 of a Series B warrant to purchase one common
share, at a purchase price of US$0.62
per unit. Investors whose purchase of Units in the Offering
resulted in them beneficially owning more than the
initial beneficial ownership limitation included in the warrants
following the consummation of the Offering had the opportunity to
acquire Units with Series C pre-funded warrants substituted for any
common shares they would have otherwise acquired over the initial
beneficial ownership limitation, paying the same price of
US$0.62 per Unit. The Series A
warrants are exercisable immediately and expire five years
following issuance at an exercise price of US$0.81 per share. The Series B warrants are
exercisable immediately and expire 18 months following issuance at
an exercise price of US$0.81 per
share. The pre-funded Series C warrants are exercisable immediately
and expire five years following issuance.
In connection with the Offering, the holders of approximately
21.1 million, or 96.5%, of the 21.9 million outstanding warrants
issued by the Company in previous public offerings of units in
November 2013 and January 2014 entered into amendment agreements
resulting in such warrants terminating upon closing of the
Offering, in consideration for the Company making to the holders of
such warrants a cash payment in the aggregate amount of
approximately US$5.7 million out of
the proceeds of the Offering.
The Company intends to use the net proceeds from the Offering to
make the US$5.7 million payment to
the holders of warrants in connection with the warrant amendment
agreements described above, to continue to fund ongoing drug
development activities, for the potential addition of
commercialized products to the Company's pipeline, and for general
corporate purposes, for working capital and to fund negative cash
flow.
Canaccord Genuity Inc. acted as the sole book-running manager,
and Maxim Group LLC, H. C.
Wainwright & Co., LLC and Roth Capital Partners acted as
co-managers for the Offering.
This press release does not and shall not constitute an offer to
sell or the solicitation of an offer to buy any of the Company's
securities, nor shall there be any sale of the Company's 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.
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. Forward-looking statements involve
known and unknown risks and uncertainties that 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 risk that safety and efficacy data from any of our
Phase 3 trials may not coincide with the data analyses from
previously reported Phase 1 and/or Phase 2 clinical trials, the
ability of the Company to efficiently commercialize one or more of
its products or product candidates, the ability of the Company to
take advantage of business opportunities in the pharmaceutical
industry, uncertainties related to the regulatory process, the
potential of liability arising from shareholder lawsuits and
general changes in economic conditions. Investors should consult
the Company's quarterly and annual filings with the Canadian and US
securities commissions 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.