By Elaine Rigoli
Tampa, Fla., March 29 - Genizon BioSciences announced it has closed a C$12.4 million first tranche of a secured convertible debenture financing.
Investors include venture capital companies HBM Bioventures, Biofund Management, MVI Finance and Carnegie, as well as Genizon management, board members and employees, private investors and Illumina, Inc., a developer of tools for the large-scale analysis of genetic variation and function.
"We are pleased to further our mutually beneficial partnership with Genizon through an investment in the company. We believe that with Illumina's HumanHap300 BeadChip, Genizon will be well-positioned to continue leadership in its field," said Jay Flatley, Illumina president and chief executive officer, in a statement.
The convertible pays interest at 5% for the first year and 12.5% for the second year, according to an 8-K filing with the Securities and Exchange Commission. It matures after two years, paying 112.5% of par.
On a liquidity event, the debenture automatically converts to stock.
Investors also received warrants exercisable at C$1.5437 per series H preferred share.
Genizon, located in Montreal, Quebec, is a biotechnology company that researches genetic origins and mechanisms of common diseases.
| Issuer: | Genizon BioSciences
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| Issue: | Convertible debenture
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| Amount: | C$12.4 million
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| Maturity: | 2 years
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| Coupon: | 5% for first year, 12.5% for second year
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| Payout at maturity: | 112.5
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| Warrants: | Exercisable at C$1.5437 per series H preferred share
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| Investors: | HBM Bioventures, Biofund Management, MVI Finance, Carnegie, Genizon management, board members and employees, private investors and Illumina, Inc.
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| Announcement date: | March 29
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