IntelGenx Announces Closing of Private Placements
June 22 2011 - 09:35AM
Marketwired
IntelGenx Technologies Corp. (TSX VENTURE: IGX)(OTCBB: IGXT) (the
"Company" or "IntelGenx") today announced that it has closed
private placement offerings totaling approximately 4.8 million
shares (the "Shares") of common stock (the "Common Stock") at a per
share purchase price of US$0.67, and three-year warrants (the
"Warrants") to purchase up to approximately 2.4 million shares of
Common Stock at an exercise price of US$0.74 per share, for
aggregate gross proceeds of approximately US$3.2 million.
As previously announced, on June 3, 2011 the Company entered
into a definitive securities purchase agreement with certain
accredited and institutional investors for the issuance and sale in
a private placement transaction (the "US Private Offering") of
2,582,536 Shares and Warrants to purchase up to 1,291,268 shares of
Common Stock, for aggregate gross proceeds of approximately $1.7
million.
The Company also previously announced that it intended to enter
into a definitive subscription agreement solely with Canadian
investors for the issuance and sale in a concurrent non-brokered
private placement transaction (the "Canadian Private Offering") of
up to an additional $1.5 million in Shares and Warrants under the
same terms and conditions as the US Private Offering. On June 21,
2011, the Company entered into definitive subscription agreements
with such Canadian investors for the issuance and sale of 2,238,806
Shares and Warrants to purchase up to 1,119,403 shares of Common
Stock, for aggregate gross proceeds of approximately $1.5
million.
The US and Canadian Private Offerings were consummated on June
21, 2011 (the "Closing Date") pursuant to which the Company
received aggregate gross proceeds from the US and Canadian Private
Offerings of approximately $3.2 million, before deducting offering
expenses. The Company intends to use the net proceeds from the sale
of the Shares and Warrants pursuant to the US and Canadian Private
Offerings for general corporate purposes.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw
Capital Group, Inc. (NASDAQ:RODM - News), acted as the exclusive
placement agent for the US Public Offering. On the Closing Date,
the Company paid/issued to Rodman & Renshaw, LLC or its
designees: (i) cash commissions in the amount of $121,120.85,
representing 7% of the aggregate gross proceeds received by the
Company in the US Private Offering, plus expenses in the amount of
$24,982.38; and (ii) warrants to purchase 180,778 shares of Common
Stock, representing 7% of the amount of Shares sold in the US
Private Offering.
Also on the Closing Date, the Company paid/issued to each of
Haywood Securities Inc. and Raymond James Ltd. in connection with
the Canadian Private Offering: (i) cash finder's fees in the amount
of $90,930 and $14,070 respectively, representing 7% of the
aggregate gross proceeds received by the Company in the Canadian
Private Offering; and (ii) warrants to purchase 135,716 and 21,000
shares of Common Stock respectively, representing 7% of the amount
of Shares sold in the Canadian Private Offering.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities in the US and
Canadian Private Offerings.
About IntelGenx:
IntelGenx is a drug delivery company focused on the development
of oral controlled-release products as well as novel rapidly
disintegrating delivery systems. IntelGenx uses its unique multiple
layer delivery system to provide zero-order release of active drugs
in the gastrointestinal tract. IntelGenx has also developed novel
delivery technologies for the rapid delivery of pharmaceutically
active substances in the oral cavity based on its experience with
rapidly disintegrating films. IntelGenx' research and development
pipeline includes products for the treatment of severe depression,
hypertension, erectile dysfunction, benign prostatic hyperplasia,
migraine, insomnia, bipolar disorder, idiopathic pulmonary
fibrosis, allergies and pain management. More information is
available about the company at www.intelgenx.com.
Forward Looking Statements:
This document may contain forward-looking information about
IntelGenx' operating results and business prospects that involve
substantial risks and uncertainties. Statements that are not purely
historical are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended. These
statements include, but are not limited to, statements about
IntelGenx' plans, objectives, expectations, strategies, intentions
or other characterizations of future events or circumstances and
are generally identified by the words "may," "expects,"
"anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "could," "would," and similar expressions. All forward
looking statements are expressly qualified in their entirety by
this cautionary statement. Because these forward-looking statements
are subject to a number of risks and uncertainties, IntelGenx'
actual results could differ materially from those expressed or
implied by these forward looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to, those discussed under the heading "Risk Factors" in
IntelGenx' annual report on Form 10-K for the fiscal year ended
December 31, 2010, filed with the United States Securities and
Exchange Commission and available at www.sec.gov, and also filed
with Canadian securities regulatory authorities and www.sedar.com.
IntelGenx assumes no obligation to update any such forward-looking
statements.
Each of the TSX Venture Exchange and OTC Bulletin Board has
neither approved nor disapproved the contents of this press
release.
Contacts: IntelGenx Technologies Corp. Dr. Horst G. Zerbe,
President and CEO +1 514-331-7440 (ext. 201) +1 514-331-0436 (FAX)
horst@intelgenx.com www.intelgenx.com
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