Bookrunner Canaccord Genuity helps sell units of shares, A, B warrants
By Devika Patel
Knoxville, Tenn., March 6 – Aeterna Zentaris Inc. said it priced a $37 million public offering of units. The offering was announced Thursday.
The company will sell units of one common share, 0.75 A warrants and a half-share B warrant at $0.62 per unit. Each A warrant will be exercisable at $0.81 for five years. Each B warrant will be exercisable at $0.81 for 18 months. The strike price is a 2.53% premium to the March 5 closing share price of $0.79.
Canaccord Genuity Inc. is the bookrunning manager.
Settlement is expected March 11.
Proceeds will be used to make a $5.7 million payment owed to warrant holders, for drug development activities, adding commercialized products to the company’s pipeline, general corporate purposes, working capital and to pay off negative cash flow.
Aeterna Zentaris is an oncology and endocrinology drug development company based in Quebec City.
| Issuer: | Aeterna Zentaris Inc.
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| Issue: | Units of one common share, 0.75 A warrants and a half-share B warrant
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| Amount: | $37 million
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| Price: | $0.62
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| Warrants: | 0.75 A warrants and a half-share B warrant per unit
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| Warrant expiration: | Five years (A), 18 months (B)
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| Warrant strike price: | $0.81
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| Bookrunner: | Canaccord Genuity Inc.
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| Co-managers: | Maxim Group LLC, H.C. Wainwright & Co., LLC and Roth Capital Partners
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| Announcement date: | March 5
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| Pricing date: | March 6
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| Settlement date: | March 11
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| Stock symbol: | Nasdaq: AEZS
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| Stock price: | $0.79 at close March 5
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| Market capitalization: | $36.95 million
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