VANCOUVER, BC. July 23, 2018 - Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products, is pleased to announce that it intends to complete a proposed equity financing of 4,000,000 units of the Company (the "Units") at a price of $0.20per Unit (the "Offering Price"), for aggregate gross proceeds of $800,000 (the "Offering") to the Next Edge Bio-Tech Plus Fund under a prospectus supplement to the Company’s base shelf prospectus dated August 15, 2017, which prospectus supplement will be filed in the provinces of British Columbia, Alberta, Ontario, Saskatchewan and Manitoba. Each Unit shall consist of one common share of the Company and one-half of one non-transferrable common share purchase warrant (each, a "Warrant"). Each whole Warrant shall entitle the holder thereof to purchase one common share at an exercise price of $0.30 for a period of forty-eight (48) months following the closing date of the Offering. The Warrants will include an acceleration provision, exercisable at the Company’s option, if the Company's daily volume weighted average share price is greater than $0.45 for 10 consecutive trading days.
“The Next Edge Bio-Tech Plus Fund is pleased to support Aequus in its efforts to commercialize essential therapies that address both patient and physician needs in Canada,” said Portfolio Manager Eden Rahim. “In our assessment, Aequus is a promising, emerging Canadian healthcare company with potential for significant growth through commercializing a portfolio of therapeutics targeting, Ophthalmology, Transplant, Women’s Health and Neurology, including the anti-epileptic drugs Trokendi and Oxtellar. We look forward to being their financial partner as they continue to execute on their business plan.”
“Eden Rahim is one of the most successful and experienced biotech investors in Canada and has been so for over two decades”, says Doug Janzen, Aequus Chairman and CEO. “Our business is growing and we are very excited about the future and are delighted to have institutional biotech money like the Next Edge Biotech Fund as a financial partner as we continue to grow our business.”
Aequus intends to use the net proceeds of the Offering forgeneral corporate and working capital purposes, including commercial and marketing activities, advancing internal programs and supporting on-going business development. Securities issued under the Offering will be "restricted securities" as defined in U.S. federal securities laws.The Offering is expected to close on or about the week of July 23, 2018. Completion of the Offering is subject to a number of conditions, including receipt of any required regulatory approvals, including receipt of the approval of the TSX Venture Exchange for the listing of the common shares issuable on closing of the Offering and issuable upon the exercise of the Warrants.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements.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.
About the Next Edge Biotech Plus Fund
The Next Edge Bio-Tech Plus Fund (the “Fund”) is invested primarily in US and Canadian biotech and healthcare companies. The Fund is focused on providing capital to help companies conduct late stage clinical trials and commercialization of their therapeutics. Following a discipline refined over two decades, the Fund aspires to deliver superior returns to its unitholders over the long term. The Fund is the only dedicated biotech mutual fund in Canada. The Fund’s Portfolio Manager, Eden Rahim, has over two decades experience managing healthcare mandates. Eden is a regular guest speaker about the biotech industry as a panelist, in press articles and on BNN and Bloomberg TV.
Next Edge Capital Corp. was formed as Man Investments Canada Corp. in July 2006 and was renamed Next Edge Capital Corp. (“Next Edge”) after the spinout of Man Investments Canada Corp. to management from Man Group plc in June 2014. Next Edge is registered as an Exempt Market Dealer, Portfolio Manager and/or Investment Fund Manager in certain jurisdictions. The Next Edge management team have been responsible for raising over CDN $3 Billion of alternative assets in Canada since 2000.
About Aequus Pharmaceuticals
Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown its pipeline to include several commercial products in ophthalmology and transplant, and a development stage pipeline in neurology and psychiatry with a goal of addressing the need for improved medication adherence through enhanced delivery systems. As a complement to its focus in neurology, our most recent addition to the development pipeline was a long-acting form of medical cannabis, where there is a high need for a consistent, predictable and pharmaceutical-grade delivery of products for patients. Aequus intends to commercialize its internal programs in Canada alongside its current portfolio of marketed established medicines and will look to form strategic partnerships that would maximize the reach of its product candidates worldwide. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.