Algae Biosciences Corporation files final short-term prospectus
Calgary, Alberta--(Newsfile Corp. - August 31, 2012) - Algae Biosciences Corporation (the “Corporation”) (TSXV: ABV) is pleased to announce that a final short-form prospectus has been filed with, and a receipt therefore issued by, the securities regulatory authorities in each of the provinces of Alberta, British Columbia, Saskatchewan and Ontario, in connection with the proposed public offering of the Corporation’s units (the “Units”). The short-form prospectus qualifies the distribution of a minimum of 15,789,474 Units and a maximum of 26,315,789 Units of the Corporation at a price of $0.19 per Unit (the “Offering”). Each Unit consists of one common share in the capital of the Corporation (an “Offered Share”) and one-half of one common share purchase warrant of the Corporation (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one common share of the Corporation (a “Warrant Share”) at an exercise price of $0.25 at any time up to 5:00 p.m. (Calgary time) on the date which is 24 months from the date of issuance.
Pursuant to an agency agreement dated August 28, 2012, between the Corporation, Macquarie Private Wealth Inc. (the “Lead Agent”) and Beacon Securities Limited (together with the Lead Agent, the “Agents”), the Agents have agreed to offer the Units for sale to the public in the provinces of British Columbia, Alberta, Saskatchewan and Ontario on a commercially reasonable efforts basis. The Corporation has agreed to pay the Agents (a) a fee of 8% of the gross proceeds of the Offering payable by way of cash, (b) a non-refundable corporate finance fee of $30,000 plus GST, and (c) non-transferable options to purchase Units in an amount equal to 8% of the number of Units sold under the Offering for 24 months after the closing of the Offering at a price of $0.19 per Unit.
A final short-form prospectus containing important information relating to the Offering has been filed with the securities commissions or similar authorities in the provinces of Alberta, British Columbia, Saskatchewan and Ontario. A copy of the final short form prospectus is available on SEDAR at www.sedar.com.
The net proceeds of the Offering will be used to pay costs associated with the Offering, for capital asset purchases and installations, and other corporate purposes, all as more particularly disclosed in the final short-form prospectus.
ABOUT ALGAE BIOSCIENCES CORPORATION: AlgaeBio is a Canadian biotechnology company that researches, develops, and manufactures products from micro and macro algae such as nutraceuticals, food additives, and pharmaceuticals. With access to algae growing conditions, exclusive aquaculture access to a brine water supply, and advanced proprietary technology, AlgaeBio produces human and animal consumable products, as well as offering advanced algae-based products and technologies for distribution. AlgaeBio owns and operates production facilities near Holbrook, Ariz., and is listed on the TSX Venture Exchange (TSX.V:ABV).
For more information:
Andrew D. Ayers
President and Chief Executive Officer
Algae Biosciences Corporation
This press release contains "forward-looking statements" within the meaning of applicable securities laws relating to the proposed Offering of the Units of the Corporation and the use of proceeds of the Offering. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the Offering may not be successfully completed for any reason including the failure to obtain the required approvals or clearances from regulatory authorities or some other condition to the closing is not satisfied. The intended use of the net proceeds of the Offering by the Corporation might change if the board of directors of the Corporation determines that it would be in the best interests of the Corporation to deploy the proceeds for some other purpose. The statements in this press release are provided as of the date hereof and the Corporation undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this release.
The common shares of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. 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 jurisdiction in which such offer, solicitation or sale would be unlawful.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.