News
Allon Therapeutics Inc. enters into Agreement for a $15 Million Bought Deal of Units
VANCOUVER, May 8, 2007— Allon Therapeutics Inc. (the “Corporation”) (TSX:NPC), the Neuroprotection CompanyTM today announced that it has entered into a bought deal agreement with a syndicate of underwriters led by Blackmont Capital Inc. and including GMP Securities L.P, Cormark Securities Inc., and Versant Partners Inc. Under the agreement, the syndicate has agreed to purchase 12,500,000 units (the “Units”) at a price of $1.20 per Unit, resulting in gross proceeds of $15 million.
Each Unit will consist of one common share of the Corporation (a “Common Share”) and one half of one Common Share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $1.65 for a term of 24 months.
The underwriters will have the option, exercisable for a period of 30 days after the closing date, to acquire up to an additional 1,875,000 Units or up to 937,500 Common Share purchase warrants (representing 15% of the Offering) issued by the Corporation on the Closing Date at the issue price to cover over-allotments, if any.
The net proceeds of the offer will be used for general corporate purposes.
The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals.
THE COMMON SHARES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS.
About Corporation
Allon Therapeutics Inc. is a Canadian biotechnology company with 3 Phase II programs advancing its neuroprotective drugs against conditions such as Alzheimer's, cognitive impairment, stroke, and neuropathy. The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC" (Neuro Protection CompanyTM) and based in Vancouver.
Forward Looking Statements
There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words “believes,” “may,” “plans,” “will,” “estimate,” “continue,” “anticipates,” “intends,” “expects,” and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the 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 factors include, among others, Allon’s stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market Allon’s products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Allon Therapeutics Inc. - Investor and Media Contact
Aaron Keay
Manager, Investor Relations
(604) 742-2540 or Cell: (604) 323-6911
Email: akeay@allontherapeutics.com
Website: www.allontherapeutics.com
