Maybe this is the year that Quebec City-based Aeterna Zentaris Inc. raises equity capital in a conventional manner.
The company that defines itself as "a late-stage drug development company specialized in oncology and endocrine therapy," recently filed a US$85-million shelf prospectus allowing it to raise that amount of capital over the next 25 months. Under that prospectus, Aeterna Zentaris is allowed to sell common shares or warrants to buy common shares.
Over the past year, the company has found a capital source south of the border, specifically at New York based Rodman & Renshaw LLC. It has completed four rounds of capital raising with that firm through something known as a registered direct offering --in essence, a private placement in a public company done by way of a best-effort basis. Those four transactions have raised US$45-million.(VIA financialpost)
And the past three transactions have been done at successively higher prices -- though none of the three matched the US$1.88 a unit the company was able to receive from its first transaction done in June 2009. Its most recent transaction was completed last month at US$1.37 per unit.
Those four financings continue a trend: The company finds capital in a variety of ways. For instance, in December 2008, it closed the US$52.5-million sale of a royalty stream on future sales of Cetrotide® with Cowen Healthcare Royalty Partners L.P. Ten months earlier, it received $9.125-million from the sale of the rights to miltefosine to Paladin Labs Inc. In June 2008, it raised $7.1-million from the sale of its building, which it then leased back. In September 2006, it raised US$47-million from the sale of about a quarter of its stake in Atrium Biotechnologies Inc.
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