Aeterna Zentaris raises $13.7M through registered direct offering

Apr 20 2010

Aeterna Zentaris Inc. (NASDAQ: AEZS; TSX: AEZ) (the "Company"), a late-stage drug development company specialized in oncology and endocrinology, announced today that it has completed its previously announced registered direct offering of US$15 million of units comprised of common shares and common share purchase warrants to certain institutional investors. Aeterna Zentaris received net proceeds of approximately US$13.7 million after deducting placement agent fees and other offering expenses. All of the common shares and warrants were offered pursuant to an effective shelf registration statement. Proceeds from the transaction will be used for general corporate purposes, including clinical development, capital expenditures and for working capital.

Dr. Juergen Engel, Ph.D., President and CEO of Aeterna Zentaris stated, "We are very pleased with this renewed vote of confidence from targeted specialized institutional investors. In addition, completing this financing provides us with the necessary funds to pursue our clinical and preclinical development programs and ensure a timely development of perifosine currently in Phase 3 registration trials for multiple myeloma and refractory colorectal cancer."

As of April 20, 2010 and after issuing 11,111,111 common shares at the closing of the offering, the Company had 74,201,065 common shares issued and outstanding without giving effect to or assuming the exercise of any outstanding warrants.