Newsroom 2006
Attention Business/Financial Editors:
Neurochem Announces Closing of Private Placement of US$40 Million Aggregate Principal Amount of 6% Senior Convertible Notes with a Conversion Premium of 20%
LAVAL, QC, Nov. 9 /CNW Telbec/ - Neurochem Inc. (NASDAQ: NRMX, TSX: NRM)
announced today the closing of its previously announced private placement with
UBS Securities LLC as initial purchaser, of US$40 million aggregate principal
amount of 6% senior convertible notes due in 2026, with a conversion premium
of 20%. Neurochem Inc. has granted the initial purchaser a 30-day option to
purchase up to an additional US$2.085 million aggregate principal amount of
the notes. Neurochem will pay interest on the notes until maturity on
November 15, 2026, subject to earlier repurchase, redemption or conversion.
Neurochem has been advised that the FMRC Family Trust (of which
Dr. Francesco Bellini, the Chairman, President and CEO of Neurochem, is a
beneficiary) and Power Technology Investment Corporation (a subsidiary of
Power Corporation of Canada), the shareholders of Picchio Pharma Inc., the
indirect principal shareholder of Neurochem, and certain officers and
directors of Neurochem and/or such entities have purchased approximately
US $17.585 million aggregate principal amount of the notes.
Neurochem will use the net proceeds from the private placement for
general corporate purposes, which may include, but are not limited to,
advancing its current clinical development programs or initiating new ones,
research for new or existing products and capital expenditures.
This announcement is neither an offer to sell nor a solicitation of an
offer to buy any of these securities and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offer, solicitation or
sale is unlawful.
The notes and common shares issuable upon conversion of the notes have
not been registered under the Securities Act of 1933, as amended, or any state
securities laws and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements.
About Neurochem
Neurochem Inc. is focused on the development and commercialization of
innovative therapeutics to address critical unmet medical needs. Eprodisate
(KIACTA(TM); formerly FIBRILLEX(TM)) is currently being developed for the
treatment of AA amyloidosis, and is under regulatory review for marketing
approval by the U.S. Food and Drug Administration and European Medicines
Agency. Tramiprosate (ALZHEMED(TM)), for the treatment of Alzheimer's disease,
is currently in Phase III clinical trials in both North America and Europe and
tramiprosate (CEREBRIL(TM)), for the prevention of Hemorrhagic Stroke caused
by Cerebral Amyloid Angiopathy, has completed a Phase IIa clinical trial.
Certain statements contained in this news release, other than statements
of fact that are independently verifiable at the date hereof, may constitute
forward-looking statements. Such statements, based as they are on the current
expectations of management, inherently involve numerous risks and
uncertainties, known and unknown, many of which are beyond Neurochem's
control. Such risks include but are not limited to: the impact of general
economic conditions, general conditions in the pharmaceutical industry,
changes in the regulatory environment in the jurisdictions in which Neurochem
does business, stock market volatility, fluctuations in costs, and changes to
the competitive environment due to consolidation, as well as other risks
disclosed in public filings of Neurochem. Consequently, actual future results
may differ materially from the anticipated results expressed in the
forward-looking statements. The reader should not place undue reliance, if
any, on the forward-looking statements included in this news release. These
statements speak only as of the date made and Neurochem is under no obligation
and disavows any intention to update or revise such statements as a result of
any event, circumstances or otherwise. Please see the Annual Information Form
for further risk factors that might affect the Company and its business.
For further information: Lise Hébert, PhD, Vice President, Corporate
Communications, (450) 680-4572, Fax: (450) 680-4501, lhebert@neurochem.com
