Quadra Logic Technologies Inc. on Thursday completed aprivate placement of 2 million common shares at $8.25 pershare, raising gross proceeds of $16.5 million.
The offering, called a "bought deal" in Canada, was initiatedafter a syndicate of underwriters told the Vancouver, BritishColumbia, company that it anticipated enough demand to beable to price an offering, said David Main, the company'sdirector of corporate communications and investor relations.
The offering was underwritten by Nesbitt Thomson Inc., ScotiaMcLeod Inc. and Gospel Shields & Partners Inc. Only Canadianinvestors participated.
After the offering, Quadra Logic (NASDAQ:QLTIF) has 18.2million shares outstanding and 19.7 million shares on a fullydiluted basis. The company's common stock closed unchangedThursday at $8.50 a share.
With the net proceeds from this offering, Quadra Logic hasabout $33.5 million in cash, enough to fund activities for atleast three years, Main said.
The company specializes in developing products andapplications for photodynamic therapy, and proceeds from theoffering will be used for clinical drug development, testing andcommercialization of products.
Quadra Logic's Photofrin is the first light-activated drugapproved for use with photodynamic therapy. After it isinjected and accumulates in tumors, the drug is activated by amedical laser, which causes release of toxic oxygen compoundsthat kill the tumor cells.
In April, Canadian authorities approved Photofrin for use insuperficial papillary bladder cancer.
Clinical trials showed that treatment cut cancer recurrencefrom 83 percent in control patients to 45 percent.
Photodynamic cancer and dermatology applications are beingco-developed with American Cyanamid Co., Quadra Logic'smarketing and distribution partner.
-- Nancy Garcia Associate Editor
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