Novel and generic drugs specialists Intellipharmaceutics International Inc. has entered into securities purchase agreements with institutional investors for the purchase of 3,636,364 of the company’s common shares at a purchase price of US$1.10 per share in a registered direct offering. The total gross proceeds of the transaction are approximately US$4 million.
In a press release issued yesterday, the company indicated that plans to use the net proceeds of the offering for general corporate purposes. This may include working capital, capital expenditures, research and development, accounts payable and other commercial expenditures.
Intellipharmaceutics also agreed to issue to the investors’ unregistered warrants to purchase an aggregate of 1,818,182 common shares at an exercise price of US$1.25 per share.
The warrants will be exercisable six months following the closing date and will expire 30 months after the date they become exercisable. The offering is expected to close on or about October 13, 2017, subject to the satisfaction of customary closing conditions.
The Toronto-based biotech company specializes in the research, development, and manufacture of novel and generic controlled- and targeted-release oral solid dosage drugs.
Its patented Hypermatrix technology is a multidimensional controlled-release drug delivery platform that can be applied to a wide range of existing and new pharmaceuticals.
Intellipharmaceutics has developed several drug delivery systems based on this technology platform, with a pipeline of products (some of which have received United States Food and Drug Administration approval in various stages of development.
Last month, the company said the it received a complete response letter (CRL) from the FDA for its Rexista, oxycodone hydrochloride extended-release tablets.
In its CRL, the FDA provided certain recommendations and requests for information, including that Intellipharmaceutics complete the relevant Category 2 and Category 3 studies to assess the abuse-deterrent properties of Oxycodone ER by the oral and nasal routes of administration.
The FDA also requested additional information related to the inclusion of the blue dye in the Oxycodone ER formulation, which is intended to deter abuse. The FDA has determined that it cannot approve the application in its present form.