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Lorus Therapeutics Closes Private Placement
TORONTO, ONTARIO--(June 19, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Lorus Therapeutics Inc. (TSX:LOR) ("Lorus" or the "Company") a biopharmaceutical company specializing in the discovery, research and development of pharmaceutical products is pleased to announce that it has completed a private placement of units (the "Units") at a price of $1,000 per Unit, for aggregate gross proceeds of $893,000 (the "Private Placement").
Each Unit consists of (i) a $1,000 principal amount of unsecured promissory notes (the "Promissory Notes"); and (ii) 1,000 common share purchase warrants (each, a "Warrant"). The Promissory Notes will bear interest at a rate of 10% per annum, payable monthly and are due June 19, 2014. Each Warrant entitles the holder thereof to acquire one common share of the Company at a price per common share equal to $0.25 at any time until June 19, 2015.
All securities issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities law.
The Company intends to use the net proceeds of the Private Placement for general corporate purposes. The proceeds are intended to maintain the current research and development activities of the Company while it is in discussion with several potential parties to secure additional funding by way of equity investment, license payments or other non-diluting financing. Management believes that it will complete one or more of these arrangements in sufficient time to continue to execute its planned expenditures without interruption. However, there can be no assurance that the funding will be available as necessary to meet these continuing expenditures, or if the funding is available, that it will be on terms acceptable to the Corporation.
The maximum number of common shares issuable in connection with the Private Placement, assuming the exercise of all Warrants, is 893,000 common shares. The Toronto Stock Exchange has conditionally approved the issuance of such common shares.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any of these securities in any jurisdiction.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Canadian and U.S. securities laws. Such statements include, but are not limited to, statements relating to the private placement and the purposes for which the proceeds from the private placement will be used, our ability to complete the private placement, our ability to obtain the necessary shareholder and TSX approvals, that the TSX will accept written evidence of shareholder approval and not require a shareholder meeting and other statements including words such as "continue", "expect", "intend", "will", "should", "would", "may", and other similar expressions. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements described in this press release. Such expressed or implied risk factors and assumptions could include, among others: the actual proceeds of the private placement; our use of proceeds from the private placement; our ability to complete the private placement, our ability to obtain the necessary shareholder and TSX approvals, that the TSX will accept written evidence of shareholder approval and not require a shareholder meeting, our ability to obtain the capital required for research and operations; the possible adverse effect of continuing negative market conditions; our ability to continue as a going concern, and other risks detailed from time-to-time in our ongoing quarterly filings, annual information forms, annual reports and annual filings with Canadian securities regulators and the United States Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled "Risk Factors" in our filings with Canadian securities regulators and the United States Securities and Exchange Commission underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by law. We cannot assure you that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.