Osta Biotechnologies Inc.
TSX VENTURE : OBI

Osta Biotechnologies Inc.

November 21, 2011 11:03 ET

Osta Closes Private Placement

MONTREAL, QUEBEC--(Marketwire - Nov. 21, 2011) -

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) is pleased to announce that on November 18, 2011, it has closed a private placement of 3,000,000 units at a price of $0.05 per unit, for gross proceeds to Osta of $150,000. Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant entitles the holder thereof to acquire one additional common share at a price of $0.10 for a period of five years from the closing of the private placement.

Sherbrooke Street Capital Inc. of Montreal, Québec acted as the agent in connection with the private placement. Osta issued to Sherbrooke Street Capital 100,000 non-transferable compensation options entitling it to purchase up to 100,000 units of Osta at a price of $0.05 per unit for a period of five years from the closing of the private placement. Each unit will be comprised of one common share and one common share purchase warrant entitling the holder to acquire one additional common share of Osta at a price of $0.10 per share for a period of five years from the issue date of the compensation options.

The securities issued in connection with the private placement are subject to a four-month hold period, expiring on March 19, 2012, in compliance with the policies of the TSX Venture Exchange and applicable securities legislation. As a result of the closing of the private placement, Osta has 46,786,528 issued and outstanding common shares.

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

About Osta Biotechnologies Inc.

Osta is a biopharmaceutical company listed on the TSX Venture Exchange currently focusing on developing therapeutics for Cancer and Alzheimer's disease.

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.

Contact Information

  • Osta Biotechnologies Inc.
    Dr. Ajay Gupta
    Chairman & CEO
    (514) 626-9519