Isotechnika Inc.

January 24, 2007 07:54 ET

Isotechnika Inc. to Raise $27,750,000 Through Bought Deal

EDMONTON, ALBERTA--(CCNMatthews - Jan. 24, 2007) -


Isotechnika Inc. (TSX:ISA) today announced that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and including Canaccord Capital Corporation, RBC Dominion Securities Inc. and National Bank Financial Inc., to purchase on a bought deal basis 15,000,000 units ("Units") from the Company at a price of $1.85 per Unit for aggregate gross proceeds of $27,750,000 (the "Offering"). The underwriters will also have an option, exercisable for a period of 30 days following the closing date, to purchase from the Company up to an additional 2,250,000 Units for gross proceeds of $4,162,500 to cover over-allotments. The Company intends to use the net proceeds of the Offering for clinical trial expenses, working capital and general corporate purposes.

Each unit will consist of one common share in the capital of the Company and one half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share of the Company until the date that is 24 months after the closing date at a price of $2.40 per common share. The Company will have the right to accelerate the expiry date of the warrants and require the exercise of all or a portion of the warrants, on a pro-rata basis, if at any time after 12 months from the closing date the 20-day volume weighted average price of its common shares on the TSX exceeds $3.00.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Isotechnika Inc.

Isotechnika Inc. is an international biopharmaceutical company headquartered in Edmonton, Alberta, Canada. Drawing upon its expertise in medicinal chemistry and immunology, the Company is focused on the discovery and development of novel immunosuppressive therapeutics that are safer than currently available treatments. Its entrepreneurial management and world-class team of scientists are building a pipeline of immunosuppressive drug candidates for treatment of autoimmune diseases and for use in the prevention of organ rejection in transplantation. Isotechnika looks to become the leader in development of immunosuppressant therapies.

Isotechnika's lead compound, ISA247 has successfully completed a Phase III Canadian trial for the treatment of moderate to severe psoriasis. ISA247 is currently being investigated in a combined Phase III European/Canadian psoriasis trial and a Phase IIb North American trial for the prevention of kidney graft rejection. The Company also has an additional immunosuppressive compound in its drug pipeline, TAFA93 which successfully completed Phase I clinical trials.

Isotechnika Inc. is a publicly traded company on the Toronto Stock Exchange under the symbol "ISA". More information on Isotechnika can be found at

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