Intellipharmaceutics to Raise US$5 Million at $2.75/Share Common Offering

Intellipharmaceutics International

, a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs, today announced that it is raising approximately US$5 million in a registered direct common share offering at a price of US$2.75 per share. In connection with the offering, the company will be issuing an aggregate of 1,818,182 common shares to the investors. After placement agent fees and estimated offering expenses, the company expects to receive net proceeds of approximately US$4.4 million. The offering is expected to close on or about March 14, 2012, subject to customary closing conditions. Roth Capital Partners, LLC, served as sole placement agent for the offering. Intellipharmaceutics intends to use the net proceeds to file additional Abbreviated New Drug Applications (ANDAs) with the Food and Drug Administration, to advance clinical trials for its abuse resistant Rexista™ technology and/or other NDA 505(b)(2) opportunities, to establish additional partnerships, and for working capital, research, product development and general corporate purposes.