Company will use deal proceeds for clinical trials, corporate purposes
By Devika Patel
Knoxville, Tenn., May 2 - Allon Therapeutics Inc. said it raised C$10 million in a private placement of units and subscription receipts. Bloom Burton & Co. was the agent for the deal, which priced April 16.
The company sold 15,612,500 units of one common share and one half-share warrant at C$0.25 per unit and 24,387,500 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 at a June 13 annual meeting.
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.
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
|
| Price: | C$0.25
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.40
|
| Agent: | Bloom Burton & Co.
|
| Pricing date: | April 16
|
| Settlement date: | May 2
|
| Stock symbol: | Toronto: NPC
|
| Stock price: | C$0.22 at close April 13
|
| Market capitalization: | C$27.15 million
|
|
|
| Units
|
| Amount: | C$3,903,125
|
| Units: | 15,612,500
|
| Warrants: | One half-share warrant per unit
|
|
|
| Receipts
|
| Amount: | C$6,096,875
|
| Receipts: | 24,387,500
|
| Warrants: | One half-share warrant per unit upon conversion
|
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