Allelix Biopharmaceuticals Inc. said it has raised $21.8 million(C$25 million) in an initial public offering in Canada of2,632,000 shares priced at $8.29 per share.

The Mississauga, Ontario, developer of products for tissuerepair and inflammation said the money would be usedprimarily for preclinical product development, clinical trialsand construction of a pilot production facility.

After the offering, Allelix (TSE:ALB) has 8.4 million sharesoutstanding. Underwriters Burns Fry Ltd., ScotiaMcLeod Inc.and Richardson Greenshields of Canada Ltd., have a 260,000-share overallotment.

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