Cynapsus Announces Closing of Private Placement
TORONTO, ONTARIO--(Marketwire - Oct. 24, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR DISSEMINATION
Cynapsus Therapeutics Inc. (TSX VENTURE:CTH), a specialty pharmaceutical company developing an improved dosing formulation of an approved drug used to treat the symptoms of Parkinson's disease, today announced that it has closed a brokered private placement (the "Private Placement") of units ("Units"). Cynapsus issued an aggregate of 3,400,000 Units at a price of $0.05 per Unit raising gross proceeds of $170,000. Each Unit consists of one common share and one share purchase warrant.
Each warrant entitles the holder to acquire one additional common share at an exercise price, subject to adjustment, of $0.0625 per warrant share from the closing date for a period of 12 months, and thereafter at an exercise price of $0.10 per warrant share. If the common shares of the Corporation are consolidated during the 12 month period following the closing date on a basis of more than 1.6 common shares for one new common share then the automatic increase in the exercise price of the warrants 12 months following the closing date will not apply, provided the exercise price will nevertheless be adjusted as a result of the consolidation in accordance with the terms of the warrant. The warrants shall be exercisable by the holder thereof on any business day during the period ending 60 months following the closing date.
The Company paid to Northern Securities Inc. cash commissions of $5,200 and issued 104,000 non-transferable compensation warrants, each exercisable to purchase one Cynapsus common share on the same terms as the warrants issued in the Private Placement.
The common shares issued under the Private Placement are subject to a hold period of four months expiring on February 24, 2013.
The Company will use the proceeds of the Private Placement for working capital purposes.
About Cynapsus Therapeutics
Cynapsus is a specialty pharmaceutical company developing the only oral (sublingual) delivery of the only approved drug (apomorphine) to treat the motor symptoms of Parkinson's disease. Over one million people in the United States and an estimated 5 million people globally suffer from Parkinson's disease. Parkinson's disease is a chronic and progressive neurodegenerative disease that impacts motor activity, and its prevalence is increasing with the aging of the population. Based on the IMPACT Registry Study and the results of Cynapsus' Global 500 Neurologists Survey, it is estimated that between 25 percent and 50 percent of patients experience "off" episodes in which they have impaired movement or speaking capabilities. Current medications only control the disease's symptoms, and most drugs become less effective over time as the disease progresses.
Cynapsus' lead drug candidate, APL-130277, is an easy-to-administer, fast-acting and oral reformulation of an approved drug, apomorphine, used to rescue patients from "off" episodes. Cynapsus is focused on rapidly maximizing the value of APL-130277 by completing pivotal studies in advance of a New Drug Application expected to be submitted in 2015. Cynapsus anticipates out-licensing to an appropriate pharmaceutical partner before such an application is submitted.
More information about Cynapsus (TSX VENTURE:CTH) is available at www.cynapsus.ca and at the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
Forward Looking Statements
This announcement contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Cynapsus to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks and uncertainties relating to Cynapsus' business disclosed under the heading "Risk and Uncertainties" in "Management's Discussion and Analysis of Operating Results and Financial Condition" for the year ended December 31, 2011, and its other filings with the various Canadian securities regulators which are available online at www.sedar.com. Although Cynapsus has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cynapsus does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
President and CEO
(416) 703-2449 x225
COO & CFO
(416) 703-2449 x253