May 29, 1998
Paladin Labs signs Conditional Letter of Intent with the Royal Bank Capital Corporation and BioCapital Inc. for $4 million of equity financing at $4.30 share
Paladin Labs Inc. is pleased to announce that it has signed a Conditional Letter of Intent with the Royal Bank Capital Corporation and BioCapital Inc. ("Investors") for $4 million of financing at $4.30 per share plus an additional 35% warrant coverage. Paladin’s goal is to raise an additional $2 million from another investor on the same terms as offered to the Investors.
This offer is conditional upon many factors, including but not limited to, (1) Investor's, in their sole discretion, being completely satisfied with the results of their due diligence, (2) Paladin purchasing assets from Pharmascience Inc. valued by Ernst & Young at $13.9 million in consideration for shares of Paladin at $4.30 per share, (3) the completion of a shareholders’ agreement between Investors and Pharmascience, and (4) regulatory approval for this transaction by relevant regulatory authorities. Any one of the above factors listed above, in addition to other factors not enumerated, can result in the offer being withdrawn by the Investors.
In commenting on the news, Paladin Labs President and Director, Jonathan Goodman commented: "We are thrilled to be working with Investors of such high caliber as the Royal Bank Capital Corporation and BioCapital. These Investors validate management'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. Upon successful completion of this financing and the transfer of assets from Pharmascience to Paladin, Paladin will be in an ideal position to fulfill its 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