Company will use deal proceeds for clinical trials, corporate purposes
By Devika Patel
Knoxville, Tenn., April 16 - Allon Therapeutics Inc. said it will raise about C$10 million in a substantially committed private placement of units and subscription receipts. Bloom Burton & Co. is the agent.
The company will sell units of one common share and one half-share warrant at C$0.25 per unit and receipts at C$0.25 apiece. The receipts will automatically convert into identical units of one common share and a half-share warrant subject to shareholder approval.
Each whole warrant is exercisable at C$0.40 for five years. The strike price is an 81.82% premium to the April 13 closing share price of C$0.22.
Neuro Discovery II LP will invest at least $2.5 million by buying subscription receipts.
Settlement is expected April 19.
Proceeds will be used to complete Allon's ongoing pivotal clinical trial, for testing lead product candidate davunetide for treatment of progressive supranuclear palsy and general corporate purposes.
Vancouver, B.C.-based Allon develops drugs that protect against neurodegenerative diseases such as Alzheimer's disease, stroke, traumatic brain injury, multiple sclerosis and neuropathy.
| Issuer: | Allon Therapeutics Inc.
|
| Issue: | Units of one common share and one half-share warrant, subscription receipts convertible into units of a common share and one half-share warrant
|
| Amount: | C$10 million (approximate)
|
| Price: | C$0.25
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | C$0.40
|
| Agent: | Bloom Burton & Co.
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| Investor: | Neuro Discovery II LP (for at least $2.5 million of subscription receipts)
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| Pricing date: | April 16
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| Settlement date: | April 19
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| Stock symbol: | Toronto: NPC
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| Stock price: | C$0.22 at close April 13
|
| Market capitalization: | C$23.13 million
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