Aequus Pharmaceuticals Inc.
TSX VENTURE : AQS
OTCQB : AQSZF

Aequus Pharmaceuticals Inc.

September 06, 2016 07:58 ET

Aequus Pharmaceuticals Inc. Announces $2.0 to $4.0 Million Best Efforts Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 6, 2016) -

NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Aequus Pharmaceuticals Inc. (TSX VENTURE:AQS) (OTCQB:AQSZF) (the "Company" or "Aequus") is pleased to announce that it has entered into an agreement with a syndicate of agents led by Cormark Securities Inc. and including Canaccord Genuity Corp. (collectively the "Agents"), on best efforts agency basis, to sell a minimum of 6,667,000 common shares ("Shares") and a maximum of 13,340,000 Shares from the treasury of the Company, at a price of $0.30 per Share ("Offering Price") for aggregate gross proceeds of approximately $2.0 million, in the case of the minimum offering, and approximately $4.0 million, in the case of the maximum offering (the "Offering").

In addition, the Company has granted the Agents an option ("Over-Allotment Option") to purchase up to an additional 15% of the number of Shares sold under the Offering at the Offering Price, for market stabilization purposes and to cover over-allotments, if any. The Over-Allotment Option shall be exercisable, in whole or in part, on or after the closing (described below) and for a period of 30 days thereafter.

The Company intends to use the net proceeds of the Offering for general corporate purposes.

Closing of the Offering is expected to occur on or about September 13, 2016 and is subject to regulatory approval including that of the TSX Venture Exchange.

The Offering is being made in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario by way of a prospectus supplement to the Company's base shelf prospectus dated June 30, 2015. The Shares may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and certain other jurisdictions.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such 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 jurisdiction in which such offer, solicitation or sale would be unlawful.

About Aequus

Aequus Pharmaceuticals Inc. (TSX VENTURE:AQS) (OTCQB:AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus' development stage pipeline includes several products in neurology and psychiatry with a goal of addressing the need for improved medication adherence through enhanced delivery systems. Aequus intends to commercialize its internal programs in Canada alongside its current portfolio of marketed established medicines and will look to form strategic partnerships that would maximize the reach of its product candidates worldwide. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.

Forward-Looking Statements:

This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "potential" and similar expressions. Forward-looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward-looking statements in this release include but are not limited to statements relating to: the use of proceeds of the Offering, the expected closing date of the Offering, the expected benefits of AQS1303 and transdermal delivery, the ability of the Company to add significant shareholder value in the near term, and the Company's intention to commercialize its internal programs in Canada, form strategic partnerships and build its Canadian commercial platform. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Aequus, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements.
In making the forward-looking statements included in this release, the Company has made various material assumptions, including, but not limited to general business and economic conditions, the Company's ability to protect its intellectual property, the Company's ability to raise additional funding, existing governmental regulations and changes in, or the failure to comply with, governmental regulations, changes in business strategy or development plans, and the expected benefits of AQS1303 and transdermal delivery. In evaluating forward-looking statements, current and prospective shareholders should specifically consider various factors set out under the heading "Risk Factors" in the Company's Annual Information Form dated April 29, 2016, a copy of which is available on Aequus' profile on the SEDAR website at www.sedar.com, and as otherwise disclosed from time to time on Aequus' SEDAR profile. Should one or more of these risks or uncertainties, or a risk that is not currently known to us materialize, or should assumptions underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by applicable securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance and are inherently uncertain. Accordingly, investors are cautioned not to put undue reliance on forward-looking statements.

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