By Laura Lutz
Des Moines, Nov. 14 - Allon Therapeutics Inc. concluded an upsized private placement of units for C$9 million.
The company sold 11.25 million units of one share and one half-share warrant at C$0.80 per unit. Each warrant is exercisable at C$1.00 for two years.
The deal priced on Oct. 25 as an $8 million offering of up to 10 million units. The company increased the deal size to meet demand.
When the deal priced, Allon said it expected Neuro Discovery LP to participate in the placement to maintain its 20% interest in the company.
Proceeds will be used to generate results from the company's ongoing phase 2 trial in mild cognitive impairment after coronary artery bypass graft surgery and the phase 2 trial in an Alzheimer's related condition that is expected to begin before the end of 2006. The remainder will be used for general corporate purposes.
The deal, set to close Nov. 14, is being placed through a syndicate of agents led by Blackmont Capital Inc. and Clarus Securities Inc. and including Sprott Securities Inc.
Vancouver, B.C.-based Allon develops drugs that protect against neurodegenerative diseases like Alzheimer's disease, stroke, traumatic brain injury, multiple sclerosis and neuropathy.
| Issuer: | Allon Therapeutics Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$9 million
|
| Units: | 11.25 million
|
| Price: | C$0.80
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
| Placement agents: | Blackmont Capital Inc. (lead), Clarus Securities Inc. (lead), Sprott Securities Inc.
|
| Pricing date: | Oct. 25
|
| Settlement date: | Nov. 14
|
| Stock symbol: | Toronto: NPC
|
| Stock price: | C$0.82 at close Oct. 24
|
| Stock price: | C$0.94 at close Nov. 14
|
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