MethylGene Inc. (TSX:MYG) announced today its intention to complete a private placement of up to US$20 million with U.S. institutional investors and several current institutional shareholders. Under terms of the agreement, MethylGene intends to issue up to 7,391,612 units at a subscription price per unit of $3.10, each unit consisting of one common share and thirty one-hundredths (0.30) of a common share purchase warrant, exercisable for a period of three years from the date of issuance at an exercise price of $3.90 for the initial year, $4.10 for the second year, and $4.25 for the third year. The transaction is being led by ProQuest Investments III, LP. Other new investors participating in the proposed transaction are Domain Public Equity Partners LP, CIBC Capital Partners, and Pappas Ventures.
