By Sheri Kasprzak
New York, May 5 - Medicure, Inc. is gearing up to close a $25.6 million private placement of stock with a group of U.S.- and Europe-based institutional investors.
The investors have agreed to buy 16 million shares at $1.60 each and will receive warrants for 4 million additional shares. The price per share is a 7.5% discount to the company's $1.73 closing stock price on May 4.
The warrants are exercisable at $2.10 each for five years.
Deutsche Bank Securities Inc. was the bookrunner with Needham & Co., LLC; GMP Securities LP; and Versant Partners Inc. as co-agents.
The offering is expected to close in the coming days.
Medicure plans to use the proceeds to develop its lead clinical products - MC-1 and MC-4232. The rest will be used for general corporate purposes.
Based in Winnipeg, Man., Medicure develops treatments for cardiovascular disorders.
| Issuer: | Medicure, Inc.
|
| Issue: | Stock
|
| Amount: | $25.6 million
|
| Shares: | 16 million
|
| Price: | $1.60
|
| Warrants: | For 4 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.10
|
| Placement agents: | Deutsche Bank Securities Inc. (lead); Needham & Co., LLC; GMP Securities LP; and Versant Partners Inc.
|
| Announcement date: | May 5
|
| Stock symbol: | Amex: MCU
|
| Stock price: | $1.73 at close May 4
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
