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Aeterna Zentaris closes $7-million offering

2020-08-05 18:10 ET - News Release

Ms. Jenene Thomas reports

AETERNA ZENTARIS ANNOUNCES CLOSING OF $7.0 MILLION REGISTERED DIRECT OFFERING PRICED AT-THE-MARKET

Aeterna Zentaris Inc. has closed its previously announced registered direct offering with several institutional investors in the United States for 12,427,876 common shares, at a purchase price of 56.325 cents per common share, priced at the market under Nasdaq Stock Market rules. Additionally, the company issued to the investors unregistered warrants to purchase up to an aggregate of 9,320,907 common shares in a concurrent private placement. The warrants have an exercise price of 47 cents per common share, are exercisable immediately and will expire 5.5 years following the date of issuance. The gross proceeds to the company from the offering totalled approximately $7.0-million, before deducting placement agent fees and offering expenses.

H.C. Wainwright & Co. LLC acted as the exclusive placement agent for the offering.

The company intends to use the net proceeds of this offering for general corporate purposes, which includes, among other purposes, the financing of a pediatric clinical trial in the European Union and United States for Macrilen (macimorelin), the investigation of further therapeutic uses of macimorelin, and the expansion of pipeline development activities.

The common shares described above (but not the warrants or the common shares underlying the warrants) were offered by Aeterna Zentaris pursuant to a shelf registration statement on Form F-3 (file No. 333-232935), which was previously declared effective by the U.S. Securities and Exchange Commission (SEC) on Aug. 15, 2019. Such common shares were offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

A final prospectus supplement and the accompanying prospectus relating to the registered direct offering was filed by Aeterna Zentaris with the SEC and may be obtained at the SEC's website. Electronic copies of the prospectus supplement and accompanying prospectus relating to the registered direct offering may also be obtained by contacting H.C. Wainwright, on the 3rd floor, 430 Park Ave., New York, N.Y., 10022, by telephone at 646-975-6996 or by e-mail at placements@hcwco.com.

In obtaining the approval of the Toronto Stock Exchange of the offering, the company relied on the exemption set forth in Section 602.1 of the TSX Company Manual, available to eligible interlisted issuers, since the company's common shares are also listed on the Nasdaq Capital Market and had less than 25 per cent of the overall trading volume of its listed securities occurring on all Canadian marketplaces in the 12 months immediately preceding the date on which application was made to the TSX to approve the offering.

About Aeterna Zentaris Inc.

Aeterna Zentaris is a specialty biopharmaceutical company commercializing and developing therapeutics and diagnostic tests. The company's lead product, Macrilen (macimorelin), is the first and only U.S. Fodd and Drug Administration (FDA) and European Commission approved oral test indicated for the diagnosis of adult growth hormone deficiency (AGHD). Macrilen is currently marketed in the United States through a licence agreement with Novo Nordisk and Aeterna Zentaris receives double-digit royalties on sales. Aeterna Zentaris owns all rights to macimorelin outside of the U.S. and Canada.

Aeterna Zentaris is also leveraging the clinical success and compelling safety profile of macimorelin to develop it for the diagnosis of child-onset growth hormone deficiency (CGHD), an area of significant unmet need.

The company is actively pursuing business development opportunities for the commercialization of macimorelin in Europe and the rest of the world, in addition to other non-strategic assets to monetize their value.

We seek Safe Harbor.

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