On January 27, 2020 IntelGenx Technologies Corp. (TSXV: IGX) (OTCQX: IGXT) (the "Company" or "IntelGenx") reported the pricing of an agency offering (the "Offering") of up to 20,000,000 units, subject to a minimum offering of 10,000,000 units (the "Units"), for gross proceeds of between $5,000,000 and $10,000,000, assuming no exercise of the over-allotment option granted to the Agent (as defined below), at a price of $0.50 per Unit (Press release, IntelGenx, JAN 27, 2020, View Source [SID1234553570]). Each Unit will consist of one share (each, an "Offered Share") of common stock of the Company ("Common Stock") and one warrant (each, a "Warrant") to purchase one share of Common Stock at an exercise price of $0.75 per share (a "Warrant Share"). The Warrants will be exercisable immediately and will expire on the third anniversary of the date of their issuance.
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The Offering is being conducted on a commercially reasonable best efforts basis by Echelon Wealth Partners Inc. (the "Agent") in the provinces of British Columbia, Alberta, Manitoba and Ontario. Closing of the Offering is expected to occur on or about February 11, 2020.
The Company has granted to the Agent an option to increase the size of the Offering by up to 15%, exercisable in whole or in part at any time for a period of 30 days after and including the closing date of the Offering.
The net proceeds from the Offering will be used for the Company’s Phase 2A Montelukast Study and general working capital requirements.
The Company has applied to list the Offered Shares, the Warrants and the Warrant Shares underlying the Units on the TSX Venture Exchange (the "TSXV"). The approval is subject to fulfillment by the Company of customary closing conditions of the TSXV.
The Company intends to file a final short form prospectus (the "Prospectus") in the provinces of British Columbia, Alberta, Manitoba, Ontario and Quebec, as well as an amended registration statement on Form S-1 (the "Registration Statement") with the United States Securities and Exchange Commission (the "SEC") with respect to the Offering today. The Offering is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals, including the SEC declaring the Registration Statement effective.
Before investing, you should read the Prospectus and the Registration Statement, as well as other documents the Company has filed or will file late today with the SEC and the Canadian securities regulators for more complete information about the Company and this Offering. A copy of the Prospectus is available under the Corporation’s profile at www.sedar.com and a copy of the Registration Statement can be obtained from the SEC’s website at www.sec.gov or by request to Echelon Wealth Partners Inc. at [email protected].
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date.