Medicago Inc.
TSX : MDG

Medicago Inc.

March 25, 2011 09:40 ET

Medicago Announces Terms of Overnight Marketed $17.4 Million Equity Offering

QUEBEC CITY, QUEBEC--(Marketwire - March 25, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Medicago Inc. ("Medicago" or the "Company") (TSX:MDG), is pleased to announce it has carried-out an overnight marketed offering and agreed to sell up to 34,117,600 units (each, a "Unit") at a price of $0.51 per Unit, representing gross proceeds of $17,399,976 (the "Offering"). The Offering is effected, on an agency basis, in each of the provinces of British Columbia, Alberta, Ontario and Quebec by way of a prospectus supplement to Medicago's base shelf prospectus dated July 7, 2010. The Offering is being co-led by Desjardins Securities Inc. and Bloom Burton & Co. Inc. (the "Lead Agents") and the syndicate of agents is comprised by Paradigm Capital Inc., Roth Capital Partners, LLC, Laurentian Bank Securities Inc. and RBC Dominion Securities Inc. (collectively, with the Lead Agents, the "Agents") also .

Each Unit is comprised of one common share (a "Common Share") and one quarter of one common share purchase warrant (each, a "Warrant"). Each full Warrant will have an exercise price of $0.75, exercisable for a period of 24 months following the closing date of the Offering. The Warrants are subject to an accelerated expiry if, at any time after the closing of the offering, the published closing trade price of the Common Shares on the TSX is equal or superior to $1.00 for any 20 consecutive trading days, in which event the Company may give the holders a written notice that the Warrants will expire at 5:00 p.m. (Montréal time) on the 30th day from the receipt of such notice.

Net proceeds from the Offering will be used for continued clinical development of the Company's plant-based manufactured Influenza Virus Like Particles ("VLP") vaccines, to fund the development of additional potential therapeutic candidates and for other general corporate and working capital purposes.

The Offering is expected to close on or about April 5, 2011, subject to the satisfaction of all necessary regulatory approvals, including the conditional listing approval of the Toronto Stock Exchange.

This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

About Medicago

Medicago is committed to provide highly effective and affordable vaccines based on proprietary VLP and manufacturing technologies. Medicago is developing VLP vaccines to protect against H5N1 pandemic influenza, using a transient expression system which produces recombinant vaccine antigens in non-transgenic plants. This technology has potential to offer advantages of speed and cost over competitive technologies. It could deliver a vaccine for testing in about a month after the identification and reception of genetic sequences from a pandemic strain. This production time frame has the potential to allow vaccination of the population before the first wave of a pandemic strikes and to supply large volumes of vaccine antigens to the world market. Additional information about Medicago is available at www.medicago.com.

Forward Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with Medicago's business and the environment in which the Company operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to Medicago or its management. The forward-looking statements are not historical facts, but reflect Medicago's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks Factors and Uncertainties" in Medicago's Annual Information Form filed on March 24, 2010 with the regulatory authorities. Medicago assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Contact Information

  • Medicago Inc.
    Andy Sheldon
    President and CEO
    (418) 658-9393
    or
    Medicago Inc.
    Christina Cameron
    Director, Investor Relations
    (418) 658-9393
    or
    Medicago Inc.
    Pierre Labbe
    Chief Financial Officer
    (418) 658-9393