Medicure raises $25M in placing

Canada's Medicure, a cardiovascular drug discovery and development company, today announced that it has entered into Securities Purchase Agreements with US and European institutional investors raising total gross proceeds of approximately $25.0 million. Under terms of the agreements, Medicure intends to issue approximately 16 million common shares at a price of $1.60 each, together with warrants, to purchase around four million additional common shares. The warrants have a five year term and an exercise price of $2.10. The private placement is expected to close in the next several days and is subject to the approval of the Toronto Stock Exchange and the American Stock Exchange and other customary closing conditions.

Deutsche Bank Securities acted as the lead placement agent and Needham & Co, GMP Securities and Versant Partners served as co-placement agents for the transaction.

"We were extremely pleased with the degree of US institutional interest exhibited in this placement, and are delighted to welcome a number of new, high-quality investors as Medicure shareholders," commented Medicure's chief executive, Albert Friesen. "We remain committed to advancing our partnership discussions for the development of MC-1. The proceeds of this financing provides us with the flexibility to proceed with the single Phase III MEND-CABG study with MC-1," he added.