QUEBEC CITY, Feb. 17 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. today announced that one of its strategic shareholders, SGF Sante Inc. (“SGF”), exercised its right to early convert the entirety of its convertible term loan in the principal amount of $12.5 million it had extended to AEterna Zentaris in April 2003 and that was to mature on March 31, 2006. In accordance with the terms of the convertible term loan, and additional arrangements between AEterna Zentaris and SGF, AEterna Zentaris has issued a total of 3,477,544 of its common shares to the SGF upon conversion of the loan, representing the principal and interest due to the stated maturity date under the loan, based on the conversion price that had been agreed upon in the loan agreement. Upon issuance of the 3,477,544 common shares by AEterna Zentaris, SGF’s ownership and voting interest in AEterna Zentaris has increased from 10.75% to 16.59%.
“We are very pleased with this vote of confidence from SGF. We now benefit from an even more solid financial position which will enable us to aggressively pursue our growth strategy,” commented Gilles Gagnon, AEterna Zentaris President & Chief Executive Officer.
About AEterna Zentaris Inc.
AEterna Zentaris Inc. is a growing global biopharmaceutical company engaged in the discovery, development and marketing of therapies for cancer and endocrine disorders. The total number of AEterna Zentaris issued and outstanding shares now stands at 53,104,902.
AEterna Zentaris also owns 48.4% of the equity of Atrium Biotechnologies Inc. and 64.8% of its voting rights. Atrium is a developer, manufacturer and marketer of science-based products for the cosmetics, pharmaceutical, chemical and nutritional industries.
News releases and additional information are available at www.aeternazentaris.com.
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the U.S. Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which could cause the Company’s actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, among others, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of the Company to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. Investors should consult the Company’s quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties relating to the forward-looking statements. Investors are cautioned not to rely on these forward-looking statements. The Company does not undertake to update these forward-looking statements.
AETERNA ZENTARIS INC. (FORMERLY/ANCIENNEMENT - LES LABORATOIRES AETERNA
CONTACT: Media Relations: Paul Burroughs, (418) 652-8525 ext. 406,paul.burroughs@aeternazentaris.com; Investor Relations: Jenene Thomas,(418) 655-6420 or (908) 996-3154, jenene.thomas@aeternazentaris.com; Torequest a free copy of this organization’s annual report, please go tohttp://www.newswire.ca and click on reports@cnw.