WINNIPEG, MANITOBA--(Marketwire - Dec. 14, 2012) - Kane Biotech Inc. (TSX VENTURE:KNE) (the "Corporation") today announced closing of the Corporation's previously announced non-brokered private placement offering (the "Offering") units ("Units") at a price of $0.08 per Unit. Each Unit is comprised of one common share of the Corporation (a "Share") and one Share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one Share at a price of $0.15 per Share for a period of 12 months from the date of issuance of the Warrant. At the closing the Corporation issued 18,035,000 Units for aggregate gross proceeds of $1,442,800.
The Common Shares and Warrants forming the Units issued pursuant to the Offering will be subject to a hold period of four months and a day in accordance with applicable securities laws.
Certain persons assisted the Corporation by introducing potential subscribers for the Offering and will be entitled to receive: (i) a finder's fee, payable in cash, equal to 8% of the total subscription proceeds received from subscribers introduced to the Corporation by such finder; and (ii) Share purchase warrants ("Compensation Warrants") equal to 8% of the number of Units sold pursuant to the Offering to subscribers introduced to the Corporation by such finder. Each Compensation Warrant shall entitle the holder thereof to purchase one Share at a price of $0.08 per Share for a period of 12 months form the date of issuance of the Compensation Warrant.
The net proceeds of the Offering will be used for the Corporation's research and development program and for working capital purposes.
The Offering is subject to the final approval of the TSX Venture Exchange.
About Kane Biotech Inc.
Kane Biotech is a biotechnology company engaged in the development of products to prevent and disperse biofilms. Biofilms develop when bacteria, and other microorganisms, form a protective matrix that acts as a shield against attack. When in a biofilm, bacteria become highly resistant to antibiotics, biocides, disinfectants, high temperatures and host immune responses. This resiliency contributes to human health problems such as recurrent urinary tract infections, medical device associated infections and tooth decay.
Kane Biotech uses a patent protected technology based on molecular mechanisms of biofilm formation and methods for finding compounds that inhibit or disrupt biofilms. The Company has evidence that this technology has potential to significantly improve the ability to prevent and/or destroy biofilms in several medical and industrial applications.
Caution Regarding Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, our anticipated future operating results, and can, in some cases, be identified by the use of words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.
These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: Kane's early stage of development, lack of product revenues and history of operating losses, uncertainties related to clinical trials and product development, rapid technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, supply of raw materials, income tax matters, management of growth, partnerships for development and commercialization of technology, effects of insurers' willingness to pay for products, system failures, dependence on key personnel, foreign currency risk, risks related to regulatory matters and risks related to intellectual property and other risks detailed from time to time in Kane's filings with Canadian securities regulatory authorities, as well as Kane's ability to anticipate and manage the risks associated with the foregoing. Kane cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on Kane's forward-looking statements to make decisions with respect to Kane, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
These risks and uncertainties should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Kane cannot provide assurance that actual results will be consistent with these forward-looking statements. Kane undertakes no obligation to update or revise any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.