Stressgen to raise C$9.25 million in private placement of convertible loan as part of reorganization

By Sheri Kasprzak

New York, Jan. 30 - Stressgen Biotechnologies Corp. said it entered into an agreement with 0747036 B.C. Ltd. for a C$9.25 million private placement of a convertible loan.

The offering is part of 0747036's plan to acquire Stressgen.

A total of C$3 million of the funds from the private placement will be held in escrow pending satisfaction of certain conditions.

The terms of the financing were not released on Monday.

Stressgen will transfer all of its assets to the newly formed company following its acquisition by 0747036 B.C. Stressgen's existing shareholders will exchange their shares on a one-for-one basis for shares of the new company.

The transaction is slated to close in March.

Victoria, B.C.-based Stressgen is a biopharmaceutical company focused on the development of therapeutic vaccines for infectious diseases and cancer.

On Monday, the company's stock gained C$0.01 to close at C$0.74 (Toronto: SSB).

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