Transition Therapeutics announces $17M private placement
Transition Therapeutics Inc. (TSX: TTH; NASDAQ: TTHI) intends to complete a US $17 million private placement with Jack W. Schuler, Larry N. Feinberg, Oracle Investment Management, certain Transition Board members, management and other existing shareholders.
Transition Therapeutics will issue 3,195,487 units priced at US $5.32 per unit to raise gross proceeds of approximately $17 million. Each unit consists of one common share, and 0.61 of a common share purchase warrant with a purchase price of US $7.10 per whole warrant.
Subject to approval of the Toronto Stock Exchange (TSX), the financing is expected to close on or about June 20, 2014.
“With this offering, Transition has sufficient funding to complete its Phase 2 clinical study of drug candidate ELND005 in agitation and aggression associated with Alzheimer’s disease and the Phase 2 clinical study of drug candidate TT-401 (LY2944876) in type 2 diabetes. Building on these core development programs, this offering will enable the Company to expand its pipeline of drug candidates in-licensed through partnerships with pharmaceutical companies. I am very pleased with the on-going commitment and support of our large investors, Board and management that contributed to the financing of the offering,” said Dr. Tony Cruz, Chairman & CEO of Transition.
Schuler, co-founder & Partner of Crabtree Partners and former President of Abbott Laboratories, Feinberg, founder & President of Oracle Investment Management, along with Fidelity Management & Research Company (FMRCo) are three largest shareholders, collectively controlling over 45% of Transition Therapeutics outstanding shares.