News ReleasesPrinter friendly version
Protox Completes Oversubscribed $5.8 Million Equity Financing
Thursday, November 17, 2005 - Vancouver, British Columbia - Protox Therapeutics
Inc. announced today that it completed the second and final tranche of a non-brokered
private placement, under which Protox issued an aggregate of 11,743,600 units
at a price of $0.50 per unit for total gross proceeds of over $5.8 million.
As previously disclosed on November 4, 2005, the Board of Directors of Protox
approved increasing the size of the offering from $4 million to $5.5 million.
The first tranche of the offering comprising 9,091,600 units for gross proceeds
of over $4.5 million closed on November 5, 2005. The second tranche of 2,652,000
units on the same terms for total proceeds of over $1.3 million closed today.
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.
Included in the second tranche of the private placement, Dr. Fahar Merchant,
President and CEO of Protox purchased 800,000 units under the same terms as
the other purchasers. Dr. Merchant abstained from voting on resolutions approving
the increase of the offering passed by the board of directors of Protox. Rosemina
Merchant, Protox' Director of Quality Assurance and Regulatory Affairs purchased
950,000 units under the same terms as the other purchasers.
Pursuant to the terms of the non-brokered placement for the second tranche,
the Company will pay finder's fees of $22,275 and will issue 4,950 warrants
as compensation on the same terms as those issued in the financing. All securities
issued in connection with the first closing will be subject to a four month
hold period which expires on March 5, 2006 in accordance with the policies
of the TSX Venture Exchange and applicable Canadian securities laws. All securities
issued in connection with the second closing will be subject to a four month
hold period which expires on March 17, 2006 in accordance with the policies
of the TSX Venture Exchange and applicable Canadian securities laws.
The directors and officers of the Company acquired 420,000 of the units issued
under the first tranche of the financing and 1,750,000 units under the second
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
| 
