PORT HUENEME, CA -- (Marketwired) -- 09/23/13 --
Stellar Biotechnologies, Inc. ("Stellar" or "the Company") (OTCQB: SBOTF) (TSX VENTURE: KLH), announced today, further to its news releases of August 22, 2013 and September 10, 2013, the closing of its private placement raising total gross proceeds of US$12,000,000 (the "Private Placement"). The proceeds of the Private Placement will be used for product research, aquaculture and KLH production development, capital expenditures and working capital.
"We are very gratified by the successful and strong closing of this offering. With a sound balance sheet, validation from industry investment, and continued support from Stellar's major shareholders, we can execute our expansion plans with confidence," said Frank Oakes, Stellar President and CEO. "Our team is eager to capitalize on the broadened recognition for Stellar's immunotherapy research and KLH leadership, and turn each strategic initiative into long-term shareholder value."
In connection with the Private Placement, the Company issued a total of 11,428,570 units (the "Units") for total gross proceeds of US$12,000,000, completed in two closings ($10 Million in gross proceeds announced September 10, 2013 (the "Initial Closing") and an additional $2 Million in gross proceeds announced today (the "Final Closing"). The Private Placement included a brokered portion sold to institutional and accredited investors totaling US$5,000,000 (4,761,903 Units) (the "Brokered Offering") and a non-brokered portion totaling US$7,000,000 (6,666,667 Units) (the "Non-brokered Offering").
The Non-Brokered Offering included a US$5,000,000 investment by Amaran Biotechnology, Inc., a privately-held Taiwan biotech company and biopharmaceuticals contract manufacturer.
Each Unit, sold for US$1.05, comprises one share of Stellar's common stock and one half of a share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional share of Stellar's common stock at a purchase price of US$1.35 for a period of three years from the issuance date of the Warrants.
Newport Coast Securities, Inc., an SEC registered broker-dealer and FINRA member firm, served as exclusive placement agent on behalf of the Company for the Brokered Offering and received a commission totaling US$346,325 and 333,333 placement agent warrants (the "Agent Warrants"). Each Agent Warrant entitles the holder to purchase one additional share of Stellar's common stock at a purchase price of US$1.05 for a period of three years from the issuance date of the Agent Warrants.
Subject to additional requirements imposed by the US Securities Act requiring longer hold-periods on certain of the securities for resale by US subscribers in the US market and a lock-up agreement with certain holders of the securities, the securities issued in the Initial Closing (2,857,143 Brokered Offering Units, 6,666,667 Non-Brokered Offering Units, and 200,000 Agent Warrants) are subject to a hold period expiring January 10, 2014 and the securities issued in the Final Closing (1,904,760 Brokered Offering Units and 133,333 Agent Warrants) are subject to a hold period expiring January 21, 2014.