Offering funds research and development of APL-130277 drug candidate
By Devika Patel
Knoxville, Tenn., May 25 - Cynapsus Therapeutics Inc. said it plans a C$10 million private placement of units with agent Summer Street Research Partners.
The company will sell units of one common share and two half-share warrants at a price that is between C$0.80 and C$1.00 and will equal the lower of the arithmetic average of the prior 10-day volume-weighted average trading prices of the common shares on the date of the term sheet and the arithmetic average of the prior 10-day volume-weighted average trading prices of the common shares on the settlement date.
Each whole A warrant will be exercisable at C$1.25 for five years. Each whole B warrant will be exercisable at C$1.50 for a period equal to the lesser of five years and 30 days after the company announces it has completed its Phase 1 milestone, the company's first healthy volunteer Single Ascending Dose study, where the test article is APL-130277, a sublingual thin film strip using Apomorphine as the active pharmaceutical ingredient. This is expected by March 31, 2012.
The strike prices reflect 2,400% and 2,900% premiums to the May 24 closing share price of C$0.05.
Settlement is expected June 25.
Proceeds will be used for research and development of the company's APL-130277 drug candidate, working capital, debt repayment and general corporate purposes.
Toronto-based Cynapsus Therapeutics is a research company focused on discovering the therapeutic benefits of cannabis and on the development of cannabis-based pharmaceutical products.
| Issuer: | Cynapsus Therapeutics Inc.
|
| Issue: | Units of one common share and two half-share warrants
|
| Amount: | C$10 million
|
| Price: | C$0.80 (minimum), C$1.00 (maximum)
|
| Warrants: | Two half-share warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike prices: | C$1.25 (series A), C$1.50 (series B)
|
| Agent: | Summer Street Research Partners
|
| Pricing date: | May 25
|
| Settlement date: | June 25
|
| Stock symbol: | TSX Venture: CTH
|
| Stock price: | C$0.05 at close May 24
|
| Market capitalization: | C$4.67 million
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