AEterna Zentaris to sell 3,485,000 shares of Atrium through secondary offering

By Elaine Rigoli

Tampa, Fla., Sept. 19 - AEterna Zentaris, Inc. has entered into an agreement with RBC Capital Markets providing for the sale on a bought-deal basis and distribution to the public of 3,485,000 subordinated voting shares held by it in its subsidiary, Atrium Biotechnologies Inc., representing 24% of AEterna Zentaris' ownership interest in Atrium, at a price of C$15.80 per share.

Atrium is a pharmaceutical company.

AEterna Zentaris, a biopharmaceutical company based in Quebec City, Quebec, said it expects to realize net proceeds of about $47 million from this sale of a significant portion of its ownership interest in Atrium. Atrium will not realize any proceeds from this transaction.

AEterna Zentaris said it will use the net proceeds from this offering to advance its development pipeline and for general corporate purposes.

Following the closing of the offering, AEterna Zentaris intends, subject to receiving regulatory approvals, to distribute the remaining 11,052,996 subordinated voting shares in Atrium held by it to shareholders of AEterna Zentaris prior to the end of 2006.

Closing of the offering is expected to occur on or about Oct. 10.

"We are very pleased to have seen Atrium establish itself as a solid public company since its initial public offering in April 2005 and believe it is an opportune time for us to become a pure play biopharmaceutical company, while leveraging our equity interest in Atrium," AEterna Zentaris chairman Eric Dupont stated in a news release.

"AEterna Zentaris is now more focused and will benefit from a solid financial position to execute its business plan and create additional value for its shareholders, while also affording them the opportunity to continue to benefit from the success of Atrium."

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