| FOR IMMEDIATE RELEASE | TRADING SYMBOL: MBI (TSE/VSE) MGIXF (US over the counter) |
|
Investor Relations Contact: Arthur J. Ayres Micrologix Biotech Inc. Telephone: (604) 221-9666 Toll-Free: (800) 665-1968 Fax: (604) 221-9688 info@mbiotech.com |
Website: www.mbiotech.com |
|
Vancouver, CANADA, August 18, 1999 - Micrologix Biotech Inc. is pleased to announce that it has entered into a $15 million "bought deal" financing with a syndicate of underwriters led by Yorkton Securities Inc. and including TD Securities Inc., RBC Dominion Securities Inc., CIBC World Markets Inc. and CT Securities Inc. The underwriters have agreed to purchase on a private placement basis, 7,692,500 special units at a price of $1.95 per special unit. Each special unit will entitle the holder to acquire, at no additional cost, one common share of Micrologix and one-half of a share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one common share of Micrologix at $2.35 for a period of 12 months from closing, or in certain circumstances, up to 24 months from closing. The completion of the special unit financing is subject to regulatory approvals and certain other customary conditions and is expected to close on or about August 26, 1999. On closing, the net proceeds of the financing will be placed in escrow until such time as the Company receives all necessary approvals and obtains receipts for a final prospectus qualifying the distribution of the common shares. Assuming the net proceeds of the financing are released to the Company, they will be used to fund Micrologix's research and drug development programs, including the Phase II clinical trial of MBI 226 for the prevention of central venous catheter-related bloodstream infections. Micrologix Biotech Inc. is a biopharmaceutical company developing novel drugs to treat severe and life-threatening diseases-particularly those caused by antibiotic-resistant microorganisms. The Company has a broad portfolio of drug candidates based on improved analogs of the anti-infective peptide compounds found in the host-defense systems of most life forms. Micrologix has completed Phase I and plans to initiate a Phase II clinical trial later this year for the prevention of catheter-related bloodstream infections. In addition, the Company has preclinical development programs for severe inflammatory acne, eye infections and other serious diseases.
|
|
|
The foregoing news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements frequently, but not always use the words "expects", "anticipates", "suggests", "plans", "believes" or "intends", or similar words and/or include statements concerning the Company's strategies, goals and plans, or state that certain actions, events or results "will" be taken, occur or be achieved. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, those described in the Company's annual report on Form 20-F, including the following: uncertainties related to early stage of development, technology and product development; dependence on future corporate collaborations; dependence on proprietary technology and uncertainty of patent protection; management of growth; future capital needs and uncertainty of additional funding; intense competition; manufacturing and market uncertainties; government regulation; product liability exposure and insurability.
The Toronto Stock Exchange and the Vancouver Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of this release. |