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Protox Completes Oversubscribed $4.5 Million Equity Financing
Monday, November 7, 2005 - Vancouver, British Columbia - Protox Therapeutics
Inc. announced today that it completed a non-brokered private placement of
9,091,600 units at a price of $0.50 per unit for total gross proceeds of over
$4,500,000.
Each unit comprises one common share and one common share purchase warrant.
Each warrant shall entitle the holder to purchase one common share of Protox
Therapeutics Inc. at a price of $0.65 for a period of 24 months from the closing
date of the private placement.
Proceeds of the offering will be used by Protox to fund proposed Phase I clinical
trials, for research and development and general working capital purposes.
Based on market demand, on November 4, 2005, the Board of Directors of Protox
approved increasing the size of the offering to $5.5 million. Protox anticipates
closing the second tranche of the financing in the next seven days, under
the same terms as this offering, subject to regulatory approval.
Pursuant to the terms of the non-brokered placement, the Company will pay
finder's fees of $190,253 and will issue 37,562 warrants as compensation on
the same terms as those issued in the financing. All securities issued in
connection with the private placement will be subject to a four month hold
period until March 5, 2006 in accordance with the policies of the TSX Venture
Exchange and applicable Canadian securities laws.
The directors and officers of the Company acquired an aggregate of 420,000
of the units issued under the first tranche of the financing. In order to
comply with OSC Policy 61-501, the Company advises that this participation
by its directors and officers was not finalized 21 or more days prior to the
closing and, therefore, a material change report was not filed in advance
of the closing.
About Protox Therapeutics
Protox Therapeutics Inc. is developing novel therapeutics for the treatment
of cancer and other indications by engineering the naturally occurring bacterial
protein Proaerolysin, which kills cells by puncturing their cell membrane
after activation by proteases at the tumour site (PORxin™).
The Company believes that its engineering approach will produce targeted cancer
therapeutics that may have greater efficacy and fewer side effects than existing
treatments.
For more information, contact:
Terry Vanderkruyk
Director, Investor Relations, Protox Therapeutics Inc.
Tel: 604-688-4376
Cell: 604-789-0844
Fax: 604-688-0173
tvanderkruyk@protoxtherapeutics.com
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