Aurinia Announces Private Placement
June 15 2016 - 6:00AM
Business Wire
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) (TSX:AUP) (“Aurinia”
or the “Company”) today announced that it intends to complete a
private placement of units of the Company at a price of US$2.36 per
unit, and has received commitments to purchase units totalling
US$7,080,000 (the “Private Placement”).
Each unit will consist of one common share of the Company, and a
0.35 of one common share purchase warrant exercisable for a period
of two years from the date of issuance at an exercise price of
US$2.77.
Aurinia intends to use the net proceeds from the Private
Placement to continue the timely clinical development of
voclosporin as a therapy for lupus nephritis (LN) and for general
corporate purposes.
The Chairman of the Board, the Chief Executive Officer, and
certain other officers and existing security holders, among others,
are participating in the Private Placement.
"We greatly appreciate the continued support and confidence
shown by our investors that are participating in this financing,”
commented Charles Rowland, Aurinia’s President and Chief Executive
Officer. “The proceeds from the financing will enable us to advance
product supply, prepare for the initiation of Phase 3 and product
launch with the goal of improving the lives of patients suffering
from this serious condition as quickly as possible”.
The Company anticipates that the private placement will close on
or about June 20, 2016. The Private Placement is conditional upon
the Company receiving the conditional approval of the Toronto Stock
Exchange. The Private Placement is also subject to the requirements
of the NASDAQ.
Canaccord Genuity Inc. is acting as sole placement agent for the
Private Placement.
All securities issued pursuant to the Private Placement will be
subject to a four month-and-one-day hold period in Canada and a six
month hold period in the United States in accordance with
applicable securities laws. Pursuant to a registration rights
agreement to be entered into with each subscriber, the Company
will, within 30 days of closing, file a prospectus supplement under
its registration statement on Form F-10 with respect to resales in
the United States, from time to time, of the common shares issuable
under the Private Placement and the common shares issuable upon the
exercise of warrants. Upon filing of the prospectus supplement, the
common shares and warrant shares will be freely tradeable in the
United States if sold pursuant to the resale registration
statement.
Certain insiders are participating in the Private Placement. The
Private Placement is exempt from the formal valuation and majority
of the minority requirements applicable to related party
transactions as set out in National Instrument 61-101 Protection of
Minority Securityholders in Special Transactions as the aggregate
fair market value of the securities to be purchased by related
parties pursuant to the Private Placement is less than 25% of
Aurinia’s market capitalization.
About Aurinia
Aurinia is a clinical stage pharmaceutical company focused on
the global nephrology market. The fully-enrolled Phase 2b AURA-LV
clinical trial is evaluating the efficacy of its lead drug,
voclosporin, as a treatment for active LN. LN is an inflammation of
the kidneys, that if inadequately treated can lead to end-stage
renal disease, making LN a serious and potentially life-threatening
condition.
Cautionary Note Regarding Forward-looking Statements
This press release contains forward-looking statements. The
forward-looking statements may include, without limitation,
statements regarding the anticipated closing date for the
financing, that the proceeds from the financing will enable the
Company to advance product supply, prepare for the initiation of
Phase 3 and product launch with the goal of improving the lives of
patients suffering from this serious condition as quickly as
possible, and the intended use of proceeds from the financing.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
events or developments to be materially different from any future
results, events or developments expressed or implied by such
forward looking statements. Such risks and uncertainties include,
among others, the ability of the Company to protect its
intellectual property rights, securing and maintaining corporate
alliances and partnerships, the need to raise additional capital
and the effect of capital market conditions and other factors on
capital availability, the potential of its products, the success
and timely completion of clinical studies and trials, and the
combined company's and its partners' ability to successfully obtain
regulatory approvals and commercialize voclosporin on a timely
basis. These factors should be considered carefully and readers are
cautioned not to place undue reliance on such forward-looking
statements. For additional information on risks and uncertainties
relating to these forward-looking statements, investors should
consult the Company's ongoing quarterly filings, annual reports and
the Annual Information Form and other filings found on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov/edgar.
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Aurinia Pharmaceuticals Inc.Michael R. Martin, (250)
708-4272Chief Operating Officermmartin@auriniapharma.comorRenmark
Financial Communications Inc.Barry Mire:
bmire@renmarkfinancial.comLaura Welsh:
lwelsh@renmarkfinancial.comTel: (416) 644-2020 / (514) 939-3989