Valeo Pharma Inc (CSE:VPH) announced Thursday it had closed a C$6.9 million financing to boost the launch of several new specialty pharmaceutical products.
The financing included an overallotment option exercised by a syndicate of underwriters led by Stifel GMP and broadened its investor base, the Montreal-based firm said in a statement.
"We are very pleased to have completed this bought deal financing with strong investor demand from a broad base of new shareholders,” Valeo CEO Steve Saviuk said in a statement. “The proceeds of this financing will be used to support the launch of several new products in the coming months and to accelerate new growth opportunities.”
READ: Valeo Pharma unveils $6 million financing as it works to commercialize anti-tumor agent Yondelis
The specialty pharmaceutical firm is gearing up to launch Yondelis, a novel, synthetically produced agent isolated from Ecteinascidia turbinata, a type of sea squirt, to treat patients with metastatic liposarcoma or leiomyosarcoma after traditional chemotherapy.
The financing consisted of five million units of the company priced at C$1.20 per unit, along with the full overallotment option of 750,000 additional units. Under the term sheet, each unit is made up of one share and one-half warrant, with each whole warrant exercisable at C$1.50 for a two-year period following the closing date. The warrants are also subject to acceleration if the closing share price is equal or greater to C$2 for ten consecutive trading days.
Funds from the financing will also be used to acquire inventory and product filing fees, as well as working capital and general corporate purposes, the firm said in a release.
Separately, Valeo warrants have been approved to list on the Canadian Securities Exchange.
Valeo is focused on commercializing products for neurodegenerative diseases, oncology and hospital specialty products.
Updated with warrant information
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