IMI completes bought-deal private placement financing
August 30 2005 - 4:51PM
PR Newswire (US)
CDN$10 million/US$8.2 million financing positions IMI for future
anticipated growth TORONTO, Aug. 30 /PRNewswire-FirstCall/ --
Predictive medicine company IMI International Medical Innovations
Inc. (TSX: IMI; Amex: IME) (the "Company" or "IMI") today announced
it has completed its previously announced bought-deal private
placement financing with a syndicate of underwriters led by Orion
Securities Inc. and including Loewen Ondaatje McCutcheon Limited,
issuing CDN$10,000,000 (US$8,210,000) of units (the "Units") of the
Company for net proceeds of approximately CDN$9,250,000
(US$7,600,000). "We believe that the strong market response to this
offering in Canada as well as the U.S. reflects the investment
community's confidence in IMI's strategy, opportunities and growth
potential," said Dr. Brent Norton, President and Chief Executive
Officer. "The proceeds will be used to accelerate the development
of IMI's cancer portfolio and to expand our pipeline of
technologies. Additionally, our strengthened balance sheet helps to
position IMI to pursue new growth initiatives and to commence
partnering discussions for our cancer products." Details of the
Transaction Each Unit is comprised of a US$1,000 principal amount
7% convertible debenture (the "Debentures") and 157 common share
purchase warrants (the "Warrants"), each convertible into one
common share of the Company. The Debentures mature on August 30,
2009 and will be convertible into common shares of IMI at CDN$3.47
(US$2.85) at any time following the closing date. The Debentures
bear interest at the rate of 7% per annum payable quarterly in
cash, or, provided certain conditions are met, at the option of
IMI, in common shares, or a combination thereof. Common shares
issued in satisfaction of interest payments will have an issue
price of 90% of the average of the volume weighted average price of
the common shares on the Toronto Stock Exchange for the five
trading days immediately prior to the applicable interest payment
date. Each Warrant shall have a term of five years and an exercise
price of CDN$3.57 (US$2.93). This news release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in any jurisdiction and shall not constitute an offer, solicitation
or sale in any jurisdiction in which such offer, solicitation or
sale is unlawful. Neither the Debentures nor the Warrants nor the
underlying common shares have been registered under the United
States Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or an applicable
exemption from registration requirements. This press release
contains forward-looking statements. These statements involve known
and unknown risks and uncertainties, which could cause the
Company's actual results to differ materially from those in the
forward-looking statements. Such risks and uncertainties include,
among others, the lack of operating profit and availability of
funds and resources to pursue R&D projects, the successful and
timely completion of clinical studies, the successful development
or marketing of the Company's products, reliance on third-party
manufacturers, the competitiveness of the Company's products if
successfully commercialized, the ability of the Company to take
advantage of business opportunities, uncertainties related to the
regulatory process, and general changes in economic conditions. In
addition, while the Company routinely obtains patents for its
products and technology, the protection offered by the Company's
patents and patent applications may be challenged, invalidated or
circumvented by our competitors and there can be no guarantee of
our ability to obtain or maintain patent protection for our
products or product candidates. Investors should consult the
Company's quarterly and annual filings with the Canadian and U.S.
securities commissions for additional information on risks and
uncertainties relating to the forward-looking statements. Investors
are cautioned not to rely on these forward-looking statements. IMI
is providing this information as of the date of this press release
and does not undertake any obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events or otherwise. DATASOURCE: IMI
International Medical Innovations Inc. CONTACT: Sarah Borg-Olivier,
Director, Communications, T: (416) 222-3449, ; Ron Hosking, Vice
President, Finance & CFO, T : (416) 222-3449, ; U.S. Investor,
Media Contacts: John Nesbett, Sally Martin, The Investor Relations
Group, T: (212) 825-3210, ,
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