CALGARY, Dec. 22 /CNW/ - The Westaim Corporation announced today the
initial public offering of 4,500,000 common shares of its subsidiary NUCRYST
Pharmaceuticals Corp. ("NUCRYST") at a price of US$10 per share. NUCRYST
common shares will be traded on the Nasdaq National Market under the trading
symbol NCST and on the Toronto Stock Exchange (in Canadian dollars) under the
trading symbol NCS.
The shares are being offered by an underwriting syndicate led by
Jefferies & Company, Inc. and co-managed by Adams Harkness, Inc., GMP
Securities L.P., and SunTrust Robinson Humphrey. NUCRYST has granted the
underwriters a 30-day option to purchase up to 675,000 additional common
shares to cover over-allotments, if any.
Net proceeds from the offering are expected to be approximately
US$39.9 million or US$46.1 million if the underwriters exercise their over-
allotment option in full, after deducting underwriting discounts and
commissions and estimated offering expenses. NUCRYST plans to use
approximately US$35 million of the net proceeds for capital expenditures,
research and development and general corporate purposes, with the remaining
proceeds being used to repay indebtedness to Westaim. After the offering,
Westaim will continue to own a majority equity position in NUCRYST.
Copies of the final prospectus relating to these securities may be
obtained in the United States from Jefferies & Company, Inc. by fax request at
(212) 284-2208 and by mail request at Jefferies & Company, Inc., 520 Madison
Avenue, 12th Floor, New York, New York 10022 and in Canada from GMP Securities
L.P. by fax request at (416) 943-6133 and by mail request at GMP Securities
L.P., Attn Syndication Department, 145 King Street West, Suite 1100, Toronto,
Ontario M5H 1J8.
A registration statement relating to these securities has been declared
effective by the U.S. Securities and Exchange Commission and a final
prospectus has been filed with each of the Canadian provincial securities
regulatory authorities (other than Quebec). This press release shall not
constitute an offer to sell or a solicitation of an offer to buy, nor will
there be any sale of these securities in any state, province or jurisdiction
in which such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such state,
province or jurisdiction. The offering will be made only by means of a
prospectus.
NUCRYST Pharmaceuticals develops, manufactures and commercializes medical
products that fight infection and inflammation based on its nanocrystalline
silver technology. Advanced wound care products with the company's
SILCRYST(TM) coatings are sold by Smith & Nephew plc under an exclusive
license in over 30 countries under its Acticoat(TM) trademark. NUCRYST is also
developing pharmaceutical products to address medical conditions that are
characterized by both infection and inflammation. The company has developed
its nanocrystalline silver in a powder form for use as an active
pharmaceutical ingredient, referred to as NPI 32101. Information contained on
the company's website does not constitute part of, nor is it incorporated
into, the prospectus referenced above or any of the company's SEC filing.
The Westaim Corporation's technology investments include: NUCRYST
Pharmaceuticals and iFire Technology, which has developed a low-cost flat
panel display. Westaim's common shares are listed on NASDAQ under the symbol
WEDX and on the Toronto Stock Exchange under the trading symbol WED.
Acticoat(TM) is a trademark of Smith & Nephew plc
SILCRYST(TM) is a trademark of NUCRYST Pharmaceuticals Corp.
This news release contains forward-looking statements. These statements
are based on current expectations that are subject to risks and uncertainties,
and Westaim can give no assurance that these expectations are correct. Various
factors, including those described in NUCRYST's Registration Statement on Form
F-1 and in the final prospectus relating to the initial public offering, could
cause actual results to differ materially from those projected in such
statements. Westaim disclaims any intention or obligation to update or review
forward-looking statements whether as a result of new information, future
developments or otherwise. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement.
%SEDAR: 00002793E
