LAVAL, QUEBEC, CANADA- May 4, 2016 – ProMetic Life Sciences Inc. (TSX: PLI) (OTCQX: PFSCF), (“ProMetic” or the ”Corporation”) announced today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and Canaccord Genuity Corp. (the “Underwriters”) under which the Underwriters have agreed to buy, on a bought deal basis, 19,400,000 common shares (the “Common Shares”) in the capital of the Corporation at a price of $3.10 per share for gross proceeds of $60,140,000 (the “Offering”).
ProMetic has also granted the Underwriters an option to purchase an additional 2,910,000 Common Shares at the same offering price for a period of 30 days following the closing of the Offering (the “Over-Allotment Option”). If the Over-Allotment Option is exercised in full, the total gross proceeds of the Common Shares offering will be $69,161,000. In consideration for the services to be rendered by the Underwriters under the Offering, the Underwriters will receive a cash commission equal to 5% of the gross proceeds raised under the Offering (inclusive of the Over-Allotment Option).
In connection with the Offering, ProMetic will file a preliminary short form prospectus (the “Prospectus”) in all Canadian provinces on or about May 10, 2016. The net proceeds to the Corporation from the Offering will be used for: (1) the advancement of additional clinical programs relating to the Corporation’s orally active anti-fibrotic drug PBI-4050 such as scleroderma and cystic fibrosis, (2) the scale-up of PBI-4050 follow-on drug candidates and their advancement into clinical stages, (3) the advancement of new clinical indications for plasminogen including wound healing, (4) the expansion of clinical uses and proprietary positions on some plasma-derived orphan drugs, (5) the expansion of manufacturing capabilities related to the plasma derived therapeutics. These initiatives, as well as providing additional working capital will allow the Corporation to continue to exercise greater control and ownership over its technology platforms, therefore providing an opportunity to retain a greater portion of the associated value for its shareholders.
Closing of the Offering is subject to certain conditions including, but not limited to, receipt of all necessary regulatory and stock exchange approvals, including the receipt of listing approval by the Toronto Stock Exchange (“TSX”) for the Common Shares. The Offering is expected to close on or about May 25, 2016. For more information, potential investors should read the Prospectus, including the “Risk Factors.” A copy of the Prospectus will be available on the SEDAR website at www.sedar.com.
The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. State securities laws and may not be offered or sold, directly or indirectly, within the United States or its territories or possessions or to or for the account of any U.S. person (as defined in Regulation S under the U.S. Securities Act) other than under an available exemption from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities within the United States, or its territories or possessions, or to or for the account of any U.S. person.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (www.prometic.com) is a long established biopharmaceutical company with globally recognized expertise in bioseparations, plasma-derived therapeutics and small-molecule drug development. ProMetic offers its state of the art technologies for large-scale purification of biologics, drug development, proteomics and the elimination of pathogens to a growing base of industry leaders and uses its own affinity technology that provides for highly efficient extraction and purification of therapeutic proteins from human plasma in order to develop best-in-class therapeutics and orphan drugs. ProMetic is also active in developing its own novel small-molecule therapeutic products targeting unmet medical needs in the field of fibrosis, cancer and autoimmune diseases/inflammation. A number of plasma-derived and small molecule products are under development for orphan drug indications. Headquartered in Laval (Canada), ProMetic has R&D facilities in the UK, the U.S. and Canada, manufacturing facilities in the UK and commercial activities in the U.S., Canada, Europe, Russia, Australia and Asia.
Forward Looking Statements
This press release contains forward-looking statements about ProMetic’s objectives, strategies and businesses that involve risks and uncertainties. These statements are “forward-looking” because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic’s ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations in ProMetic’s Annual Information Form for the year ended December 31, 2015, under the heading “Risk and Uncertainties related to ProMetic’s business”. As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless indicated otherwise.
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