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Neurochem Announces Private Placement of US$40 Million Aggregate Principal Amount of 6% Senior Convertible Notes with a Conversion Premium of 20%
Neurochem Announces Private Placement of US$40 Million Aggregate Principal Amount of 6% Senior Convertible Notes with a Conversion Premium of 20%.
About this update from Bluenergies Ltd.
[{"type":"text","content":"\n\n\n\n\nLAVAL, CANADA, Nov. 3 /CNW Telbec/ - Neurochem Inc. (NASDAQ: NRMX, TSX:\nNRM) announced today a private placement of US$40 million aggregate principal\namount of 6% senior convertible notes due in 2026, with a conversion premium\nof 20%, to a US registered broker-dealer as initial purchaser. Neurochem Inc.\nhas granted the initial purchaser a 30-day option to purchase up to an\nadditional US$2.085 million aggregate principal amount of the notes. Neurochem\nwill pay interest on the notes until maturity on November 15, 2026, subject to\nearlier repurchase, redemption or conversion. The sale of the notes is\nexpected to close on November 9, 2006.\nNeurochem has been advised that the FMRC Family Trust (of which Dr.\nFrancesco Bellini, the Chairman, President and CEO of Neurochem, is a\nbeneficiary) and Power Technology Investment Corporation (a subsidiary of\nPower Corporation of Canada), the shareholders of Picchio Pharma Inc., the\nindirect principal shareholder of Neurochem, and certain officers and\ndirectors of Neurochem and/or such entities will purchase approximately\nUS$17.585 million aggregate principal amount of the notes. Neurochem has\nagreed to file a prospectus and registration statement to qualify the resale\nof the notes and the common shares issuable upon conversion of the notes with\nsuch qualification to become effective within 180 days of the closing of the\nprivate placement.\nNeurochem will use the net proceeds from the private placement for\ngeneral corporate purposes, which may include, but are not limited to,\nadvancing its current clinical development programs or initiating new ones,\nresearch for new or existing products and capital expenditures.\nThis announcement is neither an offer to sell nor a solicitation of an\noffer to buy any of these securities and shall not constitute an offer,\nsolicitation or sale in any jurisdiction in which such offer, solicitation or\nsale is unlawful.\nThe notes and common shares issuable upon conversion of the notes have\nnot been registered under the Securities Act of 1933, as amended, or any state\nsecurities laws and may not be offered or sold in the United States absent\nregistration or an applicable exemption from the registration requirements.\n\nAbout Neurochem\n\nNeurochem Inc. is focused on the development and commercialization of\ninnovative therapeuti...