July 31, 1998
Paladin Labs completes a $13.9 million product acquisition and a $6 million private placement
Paladin Labs Inc. is pleased to announce that it has completed the purchase of a bundle of innovative pharmaceutical products and Canadian distribution rights ("Products") from Pharmascience Inc. The value of the Products, as determined by Ernst & Young, ranges between $13.1 million and $14.7 million. Paladin issued 3,232,558 shares in consideration for the Products which, in 1997, generated sales of $7.2 million.
In addition, Paladin issued a total of 1,395,348 common shares at $4.30 per share plus 1,395,348 warrants divided equally among the Royal Bank Capital Corporation, Société Innovatech du Grand Montreal, and BioCapital Investments Limited Partnership. Each warrant entitles the holder to purchase 0.35 of one common share at a price of $4.30 per share during the first year, and $4.945 per share during the second year. The total proceeds to the Company, less expenses incurred related to this share issuance, is $5.8 million.
In commenting on the news, Paladin Labs President and Director, Jonathan Goodman remarked: "It is wonderful to see our hard work and tenacity finally pay off. Moreover, we are delighted to welcome the Royal Bank Capital Corporation, Société Innovatech du Grand Montreal, and Biocapital Investments Limited Partnership as new equity partners. This sizeable investment by such sophisticated life science investors validates Paladin’s strategy of acquiring, licensing and marketing innovative pharmaceuticals in niche therapeutic areas for the Canadian market and developing late-stage innovative pharmaceuticals for a world market. With our newly acquired product line and over $6 million in cash, we are well positioned to fulfil our strategic objectives."
Paladin Labs Inc. is a public company whose shares trade on the Vancouver Stock Exchange under the symbol PLB.
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements relating to the future performance of Paladin. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially.
INFORMATION: Paladins Labs Inc.
6111 Royalmount Ave.
Montreal, Quebec
H4P 2T4
Canada
Tel: (514) 340-1112
Fax: (514) 344-4675
http://www.paladin-labs.com