Trimel Pharmaceuticals Corporation
TSX : TRL

Trimel Pharmaceuticals Corporation

July 30, 2014 09:15 ET

Trimel Completes Private Placement of Common Shares

TORONTO, ONTARIO--(Marketwired - July 30, 2014) - Trimel Pharmaceuticals Corporation (TSX:TRL) today announced that it has completed the previously announced sale of an aggregate 28,801,000 common shares of the Company at a purchase price of CDN$0.62 per common share for gross proceeds of CDN$17,856,620. The sale of the common shares was completed pursuant to an underwriting agreement with Cormark Securities Inc. ("Cormark") and subscription agreements with individual purchasers. In connection with the private placement, the Company paid a commission to Cormark equal to approximately 5.5% of the gross proceeds from the placement. All common shares issued as part of the private placement are subject to a four month hold period in accordance with applicable securities laws.

The Company intends to use the full net proceeds from the private placement to repay a significant portion of a convertible promissory note previously issued to First Generation Capital Inc. ("First Generation"), a company affiliated with Mr. Ian Ihnatowycz, the Chairman of the Board of Directors of the Company. Following this repayment, First Generation has advised that it intends to convert a portion of the note into a total of 8,945,796 common shares following August 21, 2014. Following such conversion, First Generation would hold approximately 23.7% of the Company's common shares, thereby maintaining its current securityholding percentage. The indebtedness remaining under the note (expected to equal approximately US$4.1 million) following such conversion and repayment would remain outstanding in accordance with the terms of the note and no longer be convertible into common shares after such time.

About Trimel

Trimel is a specialty pharmaceutical company involved in the sale, distribution, and development of products with a focus in men's health, women's health, and respiratory medicine. Natesto™, a product utilizing Trimel's licensed nasal gel technology, has been approved for sale in the United States by the FDA. For more information, please visit www.trimelpharmaceuticals.com.

Notice regarding forward-looking statements:

Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 5, 2014 which is available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.

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