By Ronda Fears
Nashville, Dec. 13 - Toronto-based Transition Therapeutics Inc. said Tuesday it has entered into a bought deal agreement with a syndicate of underwriters co-led by Versant Partners Inc. and GMP Securities LP to sell 15 million shares at C$0.69 each, pat with the stock's close on Monday, for proceeds of C$10.35 million.
Transition has also granted the underwriters an option to purchase an additional 6 million shares at the same price, exercisable until 24 hours prior to the closing date.
Proceeds are slated to be used for the continuation of development of Transition's lead products, the advancement of lead molecules identified by its drug discovery technology into preclinical and clinical development and general corporate and working capital purposes.
Transition's lead products include regenerative therapies E1-I.N.T. and GLP1-I.N.T. for the treatment of diabetes, MS-I.E.T. for the treatment of multiple sclerosis and HCV-I.E.T. for the treatment of hepatitis C. The company is enrolling patients for a phase 2 clinical trial for MS-I.E.T. in patients with multiple sclerosis, exploratory phase 2a clinical trials for E1-I.N.T. in type 1 and type 2 diabetes patients, and a phase 1/2 clinical trial for HCV-I.E.T. in patients with hepatitis C.
| Issuer: | Transition Therapeutics Inc.
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| Proceeds: | C$10.35 million
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| Issue: | 15 million shares
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| Greenshoe: | 15%
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| Price: | C$0.69 per share
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| Lead managers: | Versant Partners Inc. and GMP Securities LP
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| Co-managers: | Dundee Securities Corp. and National Bank Financial Inc.
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| Pricing date: | Dec. 13
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| Closing date: | Jan. 4
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| Symbol: | TTH.TO (Toronto)
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