Essetifin S.p.A.

May 17, 2016 08:30 ET

Essetifin Announces Acquisition of Additional Shares of Fennec Pharmaceuticals and Filing of its Early Warning Report

ROME, ITALY--(Marketwired - May 17, 2016) - Essetifin S.p.A. (formerly Sigma Tau Finanziaria S.p.A.) (the "Company" or "Essetifin"), an Italian investment holding company with recognized experience in the rare diseases sector, announced today that the Company acquired, through the second closing of a non-brokered private placement (the "Offering"), 1,538,751 common shares ("Common Shares") in the capital of Fennec Pharmaceuticals Inc. (the "Issuer"), which together with the Common Shares acquired in the first closing of the Offering described below represents an aggregate of 2,631,579 Common Shares (the "Purchased Shares"), or 19.30% of the Issuer's issued and outstanding Common Shares. The Purchased Shares were acquired at a price per share of US$1.90 for total consideration to the Issuer of US$5,000,000, or CAD$6,497,500, based on the daily noon currency exchange rate on April 8, 2016.

In connection with the Offering, the Company entered into a subscription agreement with the Issuer on April 8, 2016. The first closing of the Offering was completed on April 8, 2016, whereby the Company purchased 1,092,828 Common Shares or 9.03% of the issued and outstanding Common Shares of the Issuer. The second closing of the Offering was completed on May 16, 2016, whereby the Company purchased an additional 1,538,751 Common Shares following receipt of all necessary regulatory approval. As a result of the second closing of the Offering, Essetifin holds a total of 2,631,579 Common Shares, representing 19.30% of the Issuer's issued and outstanding Common Shares and is considered an insider of the Issuer, as such term is defined in applicable Canadian securities laws.

The Purchased Shares were acquired for investment purposes by the Company and the Company will evaluate its investment in the Issuer and will increase or decrease its investment by future acquisitions or dispositions of securities of the Issuer at its discretion, as circumstances warrant. As of the date hereof, the Company has no immediate future intention to acquire additional securities of the Issuer, or dispose of securities of the Issuer.

An early warning report respecting the Offering, which is incorporated by reference herein, will be electronically filed with the Securities Commission in Ontario and will be available for viewing under the Issuer's profile on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. To obtain a copy of the report, contact Mario Artali, President of the Board of Essetifin at the contact information provided for Essetifin below. The Common Shares of Fennec are traded on the Toronto Stock Exchange (TSX: FRX) and quoted on the Over-the-Counter Market in the United States (OTCQB: FENCF).

About Essetifin S.p.A.

Essetifin S.p.A. is an investment holding company with recognized experience in the rare diseases sector, employing approximately 200 people in its subsidiaries in the UK, the US, Switzerland and Germany and achieving around 60% of its turnover in the United States and 40% in the rest of the world.

Its product portfolio includes:

Treatments of Metabolic and Genetic Disorders

  • Adagen
  • Chenodeoxycholic acid
  • Cystaran
  • Carnitor in North America only

Cancer Treatments

  • Natulan/Matulane
  • Depocyt

In addition, the further development of the business can count on a pipeline of life cycle management of the above products and a number of R&D innovative technological platforms (ST-206 probiotic indicated for neonatal pathologies and heparanase inhibitors in multiple myeloma and other indications).

In addition to the commitment in the treatment and in the care of rare diseases, Essetifin holds qualified equity investments in listed and unlisted companies in the traditional pharmaceutical sector and in the rare diseases sector.

About Fennec Pharmaceuticals

Fennec Pharmaceuticals Inc. is a specialty pharmaceutical company focused on the development of Sodium Thiosulfate (STS) for the prevention of platinum-induced chemotherapy ototoxicity in pediatric patients. STS has received Orphan Drug Designation in the US in this setting. For more information, please visit www.fennecpharma.com.

Forward-Looking Statement Disclaimer

Except for historical information described in this press release, all other statements are forward-looking, including statements or assumptions about the early warning report and the filing thereof with applicable Canadian securities commissions and the future intention and expectations of the Company with respect to the investment. Forward-looking statements are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks that a material adverse change occurs in respect of the Company or the Issuer, and other risks that could affect the investment described herein, such as market and other conditions. Essetifin S.p.A. disclaims any obligation to update these forward-looking statements except as required by law.

Contact Information

  • Essetifin S.p.A.
    Via Sudafrica 20
    Rome, Italy
    00144
    +39 06 542771

    Fennec Pharmaceuticals Inc.
    68 TW Alexander Drive
    P.O. Box 13628
    Research Triangle Park, North Carolina
    27709
    919-636-5144