Biomira Inc. (BRA-TSE) has closed a $15-million US private financing of convertible debentures and warrants.
The Edmonton-based company intends to use the proceeds of the sale for further clinical trials and R&D activities.
The debentures, which carry a four-per-cent annual coupon rate, may be converted into Biomira common shares, at the option of the holder, at a fixed price of $6 US. The maturity for the debentures is 22 months, but it is repaid in instalments, with the first monthly repayment of principal and interest due Feb. 1, 2002.
Warrants for 750,000 common shares were issued to the debenture holders at a fixed exercise price of $6 US with a term expiring Dec. 31, 2004.
Biomira has the option to repay principal in cash or common stock over the term of the facility. The company also has a cash-redemption option of the entire debenture offering at a premium.
“The flexible structure of the facility with the option to utilize our common stock when it is advantageous or repay in cash is very attractive for a company like Biomira,” said Edward Taylor, vice-president finance and CFO. “It adds a new dimension to our capital and financing strategies.”
Biomira is a biotechnology company specializing in the development of therapeutic approaches to the treatment of cancer. Its year trading range is $15.95 to $5.33; it is currently trading around $7.
Web Watch:
www.biomira.com
