TORONTO, June 23, 2014 /CNW/ - Transition Therapeutics Inc. ("Transition" or the "Company") (NASDAQ: TTHI) (TSX: TTH) announced
that it has closed its previously announced private placement through
which 3,195,487 units of the Company were purchased by Jack W. Schuler,
Larry N. Feinberg, Oracle Investment Management, certain Transition
Board members, management and other existing shareholders. Gross
proceeds of the private placement totalled US$17 million.
As previously announced, each unit consists of one common share, and
0.61 of a common share purchase warrant with a purchase price of
US$7.10 per whole warrant. Each whole warrant will entitle the
holder, within two years, to purchase one additional common share in
the capital of the Company. If and when all of the warrants are
exercised, the Company will realize an additional US$13.8 million in
These securities have not been registered under the U.S. Securities Act
of 1933, as amended (the "Act"), and may not be offered or sold in the
United States unless registered under the Act or unless an exemption
from registration is available. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
Transition is a biopharmaceutical company, developing novel therapeutics
for disease indications with large markets. The Company's lead CNS drug
candidate is ELND005 for the treatment of Alzheimer's disease and Down
syndrome. Transition's lead metabolic drug candidate is TT-401
(LY2944876) for the treatment of type 2 diabetes and accompanying
obesity. The Company's shares are listed on the NASDAQ under the symbol
"TTHI" and the Toronto Stock Exchange under the symbol "TTH". For
additional information about the Company, please visit www.transitiontherapeutics.com.
Notice to Readers: Information contained in our press releases should be
considered accurate only as of the date of the release and may be
superseded by more recent information we have disclosed in later press
releases, filings with the Canadian Securities Commissions, the U.S.
Securities and Exchange Commission or otherwise. Except for historical
information, this press release may contain forward-looking statements,
relating to expectations, plans or prospects for Transition, including
the total aggregate investment to be made in the Company, the conduct
of clinical trials and the potential efficacy of its products. These
statements are based upon the current expectations and beliefs of
Transition's management and are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. These risks and
uncertainties include factors beyond Transition's control and the risk
factors and other cautionary statements discussed in Transition's
quarterly and annual filings with the Canadian Securities Commissions
and the U.S. Securities and Exchange Commission.
SOURCE Transition Therapeutics Inc.