Osta Biotechnologies Inc.

Osta Biotechnologies Inc.

April 13, 2007 16:05 ET

Osta Biotechnologies Extends Private Placement

MONTREAL, QUEBEC--(CCNMatthews - April 13, 2007) - The issue of this press release is limited to Canada only. This press release should not be issued in the United States through U.S. news wire agencies

Osta Biotechnologies Inc. (TSX VENTURE:OBI) announces that the TSX Venture Exchange has extended the deadline for the closing of Osta's previously-announced private placement (see press release dated February 21, 2007) to May 31, 2007. Notre-Dame Capital Inc. is acting as the exclusive agent for the best-efforts private placement, which is expected to close in several tranches until May 31, 2007.

After consultation with Notre-Dame Capital, Osta has decided to authorize the issuance of a maximum of 8,000,000 units at a price of $0.25 per unit, for maximum gross proceeds to Osta of $2.0 million. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share at a price of $0.40 for a period of two years from the closing of the private placement.

The securities issued in connection with the private placement will be subject to a four-month hold period under the policies of the TSX Venture Exchange and applicable securities legislation.

The net proceeds from the private placement will be used by Osta for research and development and general working capital purposes.

About Osta Biotechnologies Inc.

Osta is a biopharmaceutical company listed on the TSX Venture Exchange dedicated to developing novel diagnostics and therapeutics for the aging population, particularly in the areas of Alzheimer's disease, Osteoporosis, Cancer and X-Linked Hypophosphatemic rickets (XLH).

Certain information in this press release is forward-looking and is subject to numerous risks and uncertainties. By their nature, such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. These risks include actions of Osta's competitors, and those inherent in scientific research and development.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy for this release.

Contact Information

  • Osta Biotechnologies Inc.
    Mr. Alain Geahchan
    Director of Operations
    Osta Biotechnologies Inc.
    Dr. Ajay Gupta
    Chairman & CEO