By Kim Coghill
SYN X Pharma Inc. said it will sell 2.14 million special warrants on an underwritten basis at a price of C$7 each, which would result in total gross proceeds of C$15 million.
Toronto-based Sprott Securities Inc. is the lead underwriter. SYN X, also of Toronto, has granted an overallotment option that would entitle the underwriters to sell up to an additional 714,286 warrants at the same price for additional gross proceeds of C$5 million Canadian, bringing potential gross proceeds to $20 million Canada (US$13 million).
The transaction is expected to close May 1. Each warrant will be convertible into one common share.
Aaron Davidson, SYN X¿s vice president of business development, said the company is raising the money in order to have in excess of two years cash. ¿However, based on management estimates, there¿s a likelihood that by the end of 2002 we potentially could be cash-flow positive. That would be based upon the output of our proteomics discovery platform.¿
Kris Ralevski, SYN X¿s investor relations spokeswoman, said the company currently has 5.4 million shares outstanding and as of Sept. 30 had C$3.7 million in available cash. Year-end statements have not been released, she said.
Incorporated in March 1997, SYN X, which employs 45 people, is a proteomics-based research and development company that uses its Proteomics Discovery Platform to identify protein targets for the development of new drugs and to deliver highly specialized antibody-based diagnostics for the pharmaceutical industry. The company currently is developing diagnostics for diabetes, cardiovascular diseases that include heart failure and hypertension, and central nervous system diseases such as Alzheimer¿s disease.
SYN X has entered several collaboration agreements including one with genOway SA, of Lyon, France, under which they will develop cardiovascular and central nervous system drug targets. (See BioWorld Today, Feb. 22, 2001.)
SYN X also has agreements with Janssen Research Foundation, of Belgium, and Genzyme Diagnostics, of Cambridge, Mass.
The Janssen agreement calls for the companies to test SYN X¿s human stroke markers in Janssen¿s animal models for stroke and traumatic brain injury. Genzyme Diagnostics has licensed the rights to SYN X¿s first product, the NeuroTrak stroke panel diagnostic test.
SYN X¿s stock (CDNX:SYY) closed Friday at C$7.40, down C70 cents.