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RECEPTAGEN ENGAGES CANACCORD FOR $8-10 MILLION SPECIAL WARRANT PLACEMENT

 VANCOUVER, British Columbia, Nov. 8 /PRNewswire/ -- Receptagen Ltd. (Alberta Stock Exchange: RCG) today announced it has appointed Equity Capital Group, a Toronto-based division of Canaccord Capital Corporation, to act as agent for the best-efforts, private placement of special warrants to raise a minimum of $8 million and a maximum of $10 million for Receptagen. Closing of the private placement is contingent upon Receptagen's acquisition of Ryan Pharmaceuticals, per an announcement also made today.
 Each special warrant will be sold at a price of $2.00, and will entitle the holder to acquire at no additional consideration one common share and subject to market conditions may include one-half of one common share purchase warrant. The terms of the common share purchase warrant will be negotiated prior to closing of the private placement scheduled for Nov. 29, 1993.
 The net proceeds of the private placement, less $1 million being immediately released to the corporation, will be held in escrow pending the issuance of a final receipt for a prospectus to be filed with the regulatory authorities in British Columbia, Alberta and Ontario. The preliminary prospectus will be filed within 45 days of the closing of the private placement. The final prospectus will be filed as soon as practicable thereafter, and in any case no later than May 31, 1994. The prospectus will qualify the shares and the share-purchase warrants underlying the special warrants. In addition the corporation has agreed to use its best efforts to list its common shares on the Toronto Stock Exchange and the Vancouver Stock Exchange.
 The proceeds of the private placement will be used to develop Receptagen's core "growth blocker" technology over the next two years, including its entry into clinical trials. Additionally, the funds will be used for the acquisition and development of complementary technologies such as those owned by Ryan Pharmaceuticals, Inc. of Bellevue, Wash. Funds will also be added to general working capital. The private placement is subject to all necessary regulatory approvals and to the execution of a definitive agency agreement.
 Founded in 1992, Receptagen Ltd. operates through its wholly owned subsidiary, Receptagen Corp., which is engaged in developing proprietary growth-blocker drugs for the treatment of cancer and other life-threatening diseases marked by uncontrolled cell proliferation. The company is focusing on AIDS-related lymphoma (ARL), a highly malignant cancer of the lymphatic system that is projected to increase dramatically over the next decade.
 -0- 11/8/93
 /NOTE TO EDITORS: The Alberta Stock Exchange has neither approved nor disapproved of the information contained herein./
 /CONTACT: Gail Thurston of Receptagen Ltd., 604-685-0114, or U.S. toll-free, 800-663-8013; or John Safrance, 416-869-7308, or Clarence Debelle, 416-869-7363, or David Horton, 604-643-7671, all of Equity Capital Group, a division of Canaccord Capital Corporation/
 (RCG.)


CO: Receptagen Ltd.; Equity Capital Group; Canaccord Capital
 Corporation ST: British Columbia IN: MTC SU:


CK-MP -- NY051 -- 1807 11/08/93 13:17 EST
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Publication:PR Newswire
Date:Nov 8, 1993
Words:479
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