Biomira Inc. said investors have agreed to exercise warrants that willbring in nearly $28.8 million Canadian (U.S. $21.3 million) to theEdmonton, Alberta, company.
Biomira, which got approval this week to market its blood test fordetecting recurrent breast cancer, said Almiria Capital Corp. agreedto sell 5 million warrants to Yorkton Securities Inc. Yorkton intendsto exercise those warrants, Biomira said.
The warrants, issued in a $26.6 million financing last year, can beexercised for $5.75 Canadian before Dec. 6, 1996. Almiria, ofMontreal, got the warrants when it invested $18 million in that rightsoffering. Terms of the sale to Yorkton were not disclosed.
The stock has been trading near $8 Canadian recently on the Torontoand Montreal exchanges. When the deal is completed Biomira willhave about $60 million Canadian (U.S. $44.4 million) and expects tospend about $16 million Canadian this year. The company will haveabout 38 million shares outstanding after the warrants are exercised.
Another 2.4 million warrants issued as part of the August 1995financing still are outstanding. (See BioWorld Today, Aug. 9, 1995,p. 3.) Biomira plans to use the proceeds to continue development andcommercialization of its products.
The company's Truquant BR Radioimmunoassay was cleared formarketing Monday by the FDA. The test already is available inEurope and Canada.
Biomira's Theratope vaccine is in a series of Phase II trials for breastcancer. And the imaging agent Tru-Scint is in Phase III studies forthe detection of recurrent breast cancer.
Jane Jack, Biomira's investor relations coordinator, said the companyexpects to have a plan in place later this year on a Phase III programfor Theratope. But further definition of the Clinton administration'spolicy, unveiled last week, on speeding review of cancer drugs willbe needed before that plan is finalized.
"Our clinical regulatory group will be thoroughly investigating thenew regulations," Jack said. "We need to get that clarified before weembark on a very expensive Phase III trial. If there is an opportunityto get Theratope to the market sooner we'll certainly explore it." n
-- Jim Shrine
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