By Stephanie N. Rotondo
Seattle, June 30 – IntelGenx Technologies Corp. priced and amended a previously announced bought-deal agreement to sell 8% convertible unsecured subordinated debentures due June 30, 2020 in a prospectus filed with the Securities and Exchange Commission on Friday.
The minimum deal size was reduced to C$5 million from C$7 million. The maximum amount was steady at C$10 million.
The offering is being led by Desjardins Securities Inc.
The C$1,000-par debentures will be sold in the provinces of British Columbia, Alberta, Manitoba, Ontario and Quebec.
Conversions will be settled in common stock. The initial conversion price is C$1.35, an initial conversion premium of 8% and equal to a conversion rate of 740 shares per each C$1,000 of notes.
The convertibles will be redeemable after June 30, 2018 and through June 30, 2019, only if the company’s stock price hits a 125% price hurdle. After June 30, 2019, the paper can be redeemed at any time.
Upon a change of control, the company will be required to make a repurchase offer for the notes at 101% of par plus accrued interest.
Proceeds will be used for capital expansion, clinical studies, product development and general working capital requirements.
IntelGenx is a Quebec-based drug delivery company.
| Issuer: | IntelGenx Technologies Corp.
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| Securities: | Convertible unsecured subordinated debentures
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| Amount: | Minimum: C$5 million
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| Maximum: C$10 million
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| Maturity: | June 30, 2020
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| Bookrunner: | Desjardins Securities Inc.
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| Coupon: | 8%
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| Price: | Par of C$1,000
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| Yield: | 8%
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| Call options: | On or after June 30, 2019 at par plus accrued interest
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| Provisional call: | From June 30, 2018 if the stock hits a 125% price hurdle
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| Initial conversion price: | C$1.35
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| Initial conversion premium: | 8%
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| Initial conversion rate: | 740 shares
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| Pricing date: | June 30
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| Settlement date: | July 12
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| Stock symbol: | TSX: IGX
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| Stock price: | C$1.25 as of June 29 close
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| Market capitalization: | C$90.67 million
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